Biogen vs Amgen Which Outperforms?

Biogen and Amgen are two prominent pharmaceutical companies that are often compared in the stock market due to their similar focus on developing innovative treatments for various diseases. Biogen is known for its leading position in the field of neuroscience, with a strong portfolio of drugs for diseases like multiple sclerosis and Alzheimer's. Amgen, on the other hand, is a major player in the biotechnology sector, with a diverse range of products for oncology, cardiovascular, and bone health. Investors often weigh the strengths and weaknesses of both companies before deciding where to invest their money.

Biogen or Amgen?

When comparing Biogen and Amgen, 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 Biogen and Amgen.

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. Biogen has a dividend yield of -%, while Amgen has a dividend yield of 3.3%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Biogen reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Amgen reports a 5-year dividend growth of 10.04% year and a payout ratio of 112.70%.

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 Biogen P/E ratio at 14.23 and Amgen's P/E ratio at 34.60. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Biogen P/B ratio is 1.41 while Amgen's P/B ratio is 19.45.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Biogen has seen a 5-year revenue growth of 0.04%, while Amgen's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Biogen's ROE at 10.38% and Amgen's ROE at 68.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $157.35 for Biogen and $271.48 for Amgen. Over the past year, Biogen's prices ranged from $153.62 to $268.30, with a yearly change of 74.65%. Amgen's prices fluctuated between $257.80 and $346.85, with a yearly change of 34.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.