Amgen vs Gilead Sciences Which Outperforms?

Amgen and Gilead Sciences are two well-known biopharmaceutical companies that have been competing in the stock market for years. Amgen is known for its strong portfolio of innovative drugs for a wide range of diseases, while Gilead Sciences specializes in antiviral drugs, particularly for HIV and hepatitis. Both companies have experienced fluctuations in their stock prices due to factors such as drug approvals, market competition, and regulatory challenges. Investors closely watch the performance of these stocks to make informed decisions about their investment portfolios.

Amgen or Gilead Sciences?

When comparing Amgen and Gilead Sciences, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Amgen and Gilead Sciences.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Amgen has a dividend yield of 2.97%, while Gilead Sciences has a dividend yield of 4.06%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amgen reports a 5-year dividend growth of 10.04% year and a payout ratio of 112.70%. On the other hand, Gilead Sciences reports a 5-year dividend growth of 5.64% year and a payout ratio of 3862.70%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Amgen P/E ratio at 37.94 and Gilead Sciences's P/E ratio at 933.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amgen P/B ratio is 21.32 while Gilead Sciences's P/B ratio is 0.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amgen has seen a 5-year revenue growth of 0.47%, while Gilead Sciences's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amgen's ROE at 68.49% and Gilead Sciences's ROE at 0.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $293.80 for Amgen and $94.22 for Gilead Sciences. Over the past year, Amgen's prices ranged from $260.52 to $346.85, with a yearly change of 33.14%. Gilead Sciences's prices fluctuated between $62.07 and $98.90, with a yearly change of 59.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.