Critical Review: Adamis Pharmaceuticals (ADMP) versus Amgen (AMGN)

Adamis Pharmaceuticals (NASDAQ: ADMP) and Amgen (NASDAQ:AMGN) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Dividends

Amgen pays an annual dividend of $4.60 per share and has a dividend yield of 2.6%. Adamis Pharmaceuticals does not pay a dividend. Amgen pays out 178.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Amgen has increased its dividend for 7 consecutive years.

Earnings & Valuation

This table compares Adamis Pharmaceuticals and Amgen’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adamis Pharmaceuticals $6.47 million 18.58 -$19.43 million ($0.70) -5.14
Amgen $22.85 billion 5.58 $1.98 billion $2.58 68.47

Amgen has higher revenue and earnings than Adamis Pharmaceuticals. Adamis Pharmaceuticals is trading at a lower price-to-earnings ratio than Amgen, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Adamis Pharmaceuticals has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Amgen has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Adamis Pharmaceuticals and Amgen, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adamis Pharmaceuticals 0 0 3 0 3.00
Amgen 0 12 10 0 2.45

Adamis Pharmaceuticals presently has a consensus price target of $10.33, suggesting a potential upside of 187.04%. Amgen has a consensus price target of $192.05, suggesting a potential upside of 8.72%. Given Adamis Pharmaceuticals’ stronger consensus rating and higher probable upside, equities analysts clearly believe Adamis Pharmaceuticals is more favorable than Amgen.

Profitability

This table compares Adamis Pharmaceuticals and Amgen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adamis Pharmaceuticals -199.79% -68.01% -54.18%
Amgen 8.66% 30.87% 11.64%

Insider & Institutional Ownership

16.5% of Adamis Pharmaceuticals shares are owned by institutional investors. Comparatively, 78.6% of Amgen shares are owned by institutional investors. 12.2% of Adamis Pharmaceuticals shares are owned by insiders. Comparatively, 0.2% of Amgen shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Amgen beats Adamis Pharmaceuticals on 12 of the 17 factors compared between the two stocks.

About Adamis Pharmaceuticals

Adamis Pharmaceuticals Corporation is a pharmaceutical company. The Company is engaged in the development of its specialty pharmaceutical products. The Company is developing various products in the allergy and respiratory markets, including a dry powder inhaler technology that it acquired from 3M Company (3M). The Company’s product portfolio includes specialty pharmaceutical products, such as Epinephrine pre-filled syringe (PFS), APC-5000 dry powder inhaler (DPI), APC-1000 and APC-2000, and biotechnology products, such as TeloB-VAX (vaccine), APC-100, APC-200 and APC-300. The Company’s lead product candidate, the Epinephrine Injection USP 1:1000 0.3 milligram Pre-filled Single Dose Syringe, or the Epinephrine PFS, is a pre-filled syringe designed to deliver a premeasured 0.3 milligrams dose of epinephrine for the treatment of anaphylaxis. The Company also has licensed vaccine technology called somatic transgene immunization (STI) technology.

About Amgen

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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