Amgen (NASDAQ: AMGN) is one of 114 public companies in the “Pharmaceuticals” industry, but how does it contrast to its peers? We will compare Amgen to similar businesses based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, valuation and dividends.

Dividends

Amgen pays an annual dividend of $4.60 per share and has a dividend yield of 2.5%. Amgen pays out 41.9% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.4% and pay out 70.7% of their earnings in the form of a dividend. Amgen has raised its dividend for 6 consecutive years. Amgen is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Volatility & Risk

Amgen has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Amgen’s peers have a beta of 0.88, indicating that their average stock price is 12% less volatile than the S&P 500.

Profitability

This table compares Amgen and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amgen 35.46% 29.85% 11.72%
Amgen Competitors -2,920.14% -57.23% -9.08%

Earnings & Valuation

This table compares Amgen and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Amgen $23.05 billion $12.36 billion 16.79
Amgen Competitors $8.11 billion $2.65 billion 0.29

Amgen has higher revenue and earnings than its peers. Amgen is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

78.1% of Amgen shares are owned by institutional investors. Comparatively, 43.0% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.2% of Amgen shares are owned by company insiders. Comparatively, 12.0% of shares of all “Pharmaceuticals” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Amgen and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amgen 0 9 9 1 2.58
Amgen Competitors 808 3580 6180 156 2.53

Amgen currently has a consensus price target of $191.18, indicating a potential upside of 3.82%. As a group, “Pharmaceuticals” companies have a potential upside of 22.41%. Given Amgen’s peers higher possible upside, analysts clearly believe Amgen has less favorable growth aspects than its peers.

Summary

Amgen beats its peers on 12 of the 15 factors compared.

Amgen Company Profile

Amgen Inc. is a biotechnology company. The Company discovers, develops, manufactures and delivers various human therapeutics. It operates in human therapeutics segment. Its marketed products portfolio includes Neulasta (pegfilgrastim); erythropoiesis-stimulating agents (ESAs), such as Aranesp (darbepoetin alfa) and EPOGEN (epoetin alfa); Sensipar/Mimpara (cinacalcet); XGEVA (denosumab); Prolia (denosumab); NEUPOGEN (filgrastim), and other marketed products, such as KYPROLIS (carfilzomib), Vectibix (panitumumab), Nplate (romiplostim), Repatha (evolocumab), BLINCYTO (blinatumomab), IMLYGIC (talimogene laherparepvec) and Corlanor (ivabradine). It focuses on human therapeutics for the treatment of serious illness in the areas of oncology/hematology, cardiovascular disease and neuroscience. Its product candidates in Phase III include Erenumab for episodic migraine, Aranesp for myelodysplastic syndromes, BLINCYTO for acute lymphoblastic leukemia and IMLYGIC for metastatic melanoma.

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