Amgen Inc. (AMGN) vs Gilead Sciences, Inc. (GILD)

Amgen Inc. and Gilead Sciences, Inc. are both Drug Manufacturers General companies. Amgen Inc. is the larger, with a market value of $248.8B against $207.8B — 1.2× the size. Gilead Sciences, Inc. has negative trailing earnings, so its P/E is not meaningful; Amgen Inc. trades at 26.5×. Amgen Inc. grew revenue faster over the last twelve months: 8.15% against 6.54%. Amgen Inc. has the higher net margin (24.1% vs −12.5%) and the higher return on invested capital (14.3% vs −4.51%). Both pay a dividend; Amgen Inc. yields more (2.16% vs 1.95%). Across the 22 metrics below, Amgen Inc. leads on 12 and Gilead Sciences, Inc. on 10.

Valuation

Metric AMGN GILD Drug Manufacturers General median
P/E 26.51 n/m 26.51
P/S 6.41 6.69 3.49
P/B 17.37 16.01 5.28
Price to free cash flow 27.25 15.05 21.67
EV/EBITDA 16.91 503.68 14.73
EV/Sales 7.46 7.33 4.15
Earnings yield 3.77% (1.86%) 2.41%
Free cash flow yield 3.67% 6.65% 4.07%

Profitability

Metric AMGN GILD Drug Manufacturers General median
Gross margin 70.90% 79.93% 73.01%
Operating margin 32.41% (7.63%) 18.34%
Net margin 24.14% (12.47%) 7.31%
Free cash flow margin 24.63% 44.47% 18.56%
Return on equity 78.35% (22.45%) 5.80%
Return on assets 10.09% (7.03%) 2.28%
Return on invested capital 14.29% (4.51%) 6.26%

Growth

Metric AMGN GILD Drug Manufacturers General median
Revenue growth (TTM) 8.15% 6.54% 6.72%
EPS growth (last fiscal year) 88.23% 1,684.21% 21.81%
Revenue growth, 5-year CAGR 7.65% 3.58% 4.75%
Net income growth, 5-year CAGR 1.20% 133.35% 0.00%

Health

Metric AMGN GILD Drug Manufacturers General median
Debt to equity 3.76 2.02 0.62
Current ratio 1.48 1.32 1.39
Net debt to EBITDA 2.94 1.35 1.15

Dividend

Metric AMGN GILD Drug Manufacturers General median
Dividend yield 2.16% 1.95% 2.32%
Payout ratio 0.58 — 0.59

Size

Metric AMGN GILD Drug Manufacturers General median
Market cap 248.84b 207.84b 129.04b

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