Amgen vs Pfizer Which Offers More Value?

Amgen and Pfizer are two leading pharmaceutical companies that have established themselves as industry giants. Both companies have a strong presence in the healthcare sector, with a focus on developing innovative therapies and treatments for various illnesses and diseases. While both Amgen and Pfizer have seen fluctuations in their stock prices over the years, investors continue to monitor their performance closely due to their strong track records and potential for growth. Let's dive deeper into the comparison between Amgen and Pfizer stocks to understand how they stack up against each other.

Amgen or Pfizer?

When comparing Amgen and Pfizer, 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 Pfizer.

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 3.33%, while Pfizer has a dividend yield of 6.57%. 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, Pfizer reports a 5-year dividend growth of 3.82% year and a payout ratio of 221.76%.

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 34.36 and Pfizer's P/E ratio at 34.03. 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 19.31 while Pfizer's P/B ratio is 1.57.

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 Pfizer's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amgen's ROE at 68.49% and Pfizer's ROE at 4.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $270.02 for Amgen and $25.26 for Pfizer. Over the past year, Amgen's prices ranged from $257.80 to $346.85, with a yearly change of 34.54%. Pfizer's prices fluctuated between $24.48 and $31.54, with a yearly change of 28.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.