Amgen vs Sanofi Which Is More Lucrative?

Amgen and Sanofi are two leading biopharmaceutical companies with a strong presence in the global healthcare market. Both companies have a diversified portfolio of innovative drugs and a solid track record of delivering strong financial performance. However, they differ in their therapeutic focus, with Amgen specializing in biologics and Sanofi focusing on pharmaceuticals. Investors interested in the healthcare sector may consider comparing the stocks of these two companies to make informed decisions based on their respective strengths and growth prospects.

Amgen or Sanofi?

When comparing Amgen and Sanofi, 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 Sanofi.

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 2.76%, while Sanofi has a dividend yield of 3.11%. 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, Sanofi reports a 5-year dividend growth of 12.94% year and a payout ratio of 59.74%.

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 40.85 and Sanofi's P/E ratio at 15.07. 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 22.96 while Sanofi's P/B ratio is 1.63.

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 Sanofi's is 0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amgen's ROE at 68.49% and Sanofi's ROE at 10.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $321.61 for Amgen and $50.55 for Sanofi. Over the past year, Amgen's prices ranged from $260.52 to $346.85, with a yearly change of 33.14%. Sanofi's prices fluctuated between $45.13 and $58.97, with a yearly change of 30.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.