Amgen (NASDAQ: AMGN) is one of 116 publicly-traded companies in the “Pharmaceuticals” industry, but how does it compare to its rivals? We will compare Amgen to similar businesses based on the strength of its valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Institutional and Insider Ownership

78.1% of Amgen shares are owned by institutional investors. Comparatively, 44.3% 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Amgen and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Amgen $23.05 billion $12.36 billion 15.86
Amgen Competitors $8.08 billion $2.63 billion 0.05

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

Profitability

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

Net Margins Return on Equity Return on Assets
Amgen 35.54% 29.90% 11.80%
Amgen Competitors -2,859.71% -67.96% -9.24%

Dividends

Amgen pays an annual dividend of $4.60 per share and has a dividend yield of 2.6%. Amgen pays out 41.6% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.5% and pay out 66.0% of their earnings in the form of a dividend. Amgen has increased its dividend for 6 consecutive years. Amgen is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and target prices for Amgen and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amgen 0 10 9 1 2.55
Amgen Competitors 840 3776 6802 185 2.55

Amgen currently has a consensus target price of $190.67, suggesting a potential upside of 8.82%. As a group, “Pharmaceuticals” companies have a potential upside of 24.01%. Given Amgen’s rivals higher probable upside, analysts clearly believe Amgen has less favorable growth aspects than its rivals.

Risk & Volatility

Amgen has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Amgen’s rivals have a beta of 0.89, meaning that their average share price is 11% less volatile than the S&P 500.

Summary

Amgen beats its rivals 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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