Amgen vs Merck Indonesia Which Performs Better?

Amgen and Merck are two leading pharmaceutical companies with operations in Indonesia. Both companies have a significant presence in the Indonesian stock market, with investors closely following their performance. Amgen is known for its innovative biotechnology products, while Merck has a strong portfolio of pharmaceuticals. The competition between these two giants in the Indonesian market has drawn attention from investors seeking to capitalize on the growth potential of the healthcare industry in the country.

Amgen or Merck Indonesia?

When comparing Amgen and Merck Indonesia, 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 Merck Indonesia.

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 3.26%, while Merck Indonesia has a dividend yield of 9.22%. 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, Merck Indonesia reports a 5-year dividend growth of 3.08% year and a payout ratio of 115.53%.

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 35.01 and Merck Indonesia's P/E ratio at 12.51. 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 19.67 while Merck Indonesia's P/B ratio is 2.13.

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 Merck Indonesia's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amgen's ROE at 68.49% and Merck Indonesia's ROE at 16.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $272.36 for Amgen and Rp3460.00 for Merck Indonesia. Over the past year, Amgen's prices ranged from $257.80 to $346.85, with a yearly change of 34.54%. Merck Indonesia's prices fluctuated between Rp3390.00 and Rp4400.00, with a yearly change of 29.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.