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 $234.7B against $195.1B — 1.2× the size. Gilead Sciences, Inc. has negative trailing earnings, so its P/E is not meaningful; Amgen Inc. trades at 26.7×. Amgen Inc. grew revenue faster over the last twelve months: 9.10% against 5.52%. Amgen Inc. has the higher net margin (23.0% vs −10.6%) and the higher return on invested capital (13.0% vs −4.48%). Both pay a dividend; Amgen Inc. yields more (2.30% vs 2.08%). 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 26.66 n/m 24.54
P/S 6.13 6.37 3.39
P/B 19.98 16.53 5.00
Price to free cash flow 23.98 15.00 16.55
EV/EBITDA 16.79 829.05 13.82
EV/Sales 7.27 7.13 4.03
Earnings yield 3.75% (1.66%) 2.98%
Free cash flow yield 4.17% 6.67% 4.46%

Profitability

Metric AMGN GILD Drug Manufacturers General median
Gross margin 69.52% 79.59% 72.77%
Operating margin 29.99% (8.20%) 18.77%
Net margin 22.95% (10.64%) 8.27%
Free cash flow margin 26.71% 42.50% 17.18%
Return on equity 91.47% (20.68%) 5.87%
Return on assets 9.53% (6.17%) 2.57%
Return on invested capital 12.98% (4.48%) 6.11%

Growth

Metric AMGN GILD Drug Manufacturers General median
Revenue growth (TTM) 9.10% 5.52% 6.66%
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 4.90 2.23 0.63
Current ratio 1.37 1.27 1.32
Net debt to EBITDA 2.94 1.35 1.15

Dividend

Metric AMGN GILD Drug Manufacturers General median
Dividend yield 2.30% 2.08% 2.33%
Payout ratio 0.62 — 0.59

Size

Metric AMGN GILD Drug Manufacturers General median
Market cap 234.65b 195.13b 123.73b

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