Sanofi vs Amgen Which Is More Favorable?

Sanofi and Amgen are two pharmaceutical giants in the healthcare industry known for their innovative discoveries and technological advancements. Both companies have a solid track record of producing high-quality drugs and delivering strong financial performance, making them attractive options for investors. However, their stocks have seen fluctuations in recent years due to various factors such as regulatory challenges and market competition. Understanding the strengths and weaknesses of both companies can help investors make informed decisions when considering investing in their stocks.

Sanofi or Amgen?

When comparing Sanofi 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 Sanofi 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. Sanofi has a dividend yield of 3.11%, while Amgen has a dividend yield of 2.76%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sanofi reports a 5-year dividend growth of 12.94% year and a payout ratio of 59.74%. 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 Sanofi P/E ratio at 15.07 and Amgen's P/E ratio at 40.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sanofi P/B ratio is 1.63 while Amgen's P/B ratio is 22.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sanofi has seen a 5-year revenue growth of 0.20%, while Amgen's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sanofi's ROE at 10.71% and Amgen's ROE at 68.49%.

Retail Investors:

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