Amgen Inc. (AMGN) vs GSK PLC Sponsored ADR (GSK)

Amgen Inc. and GSK PLC Sponsored ADR are both Drug Manufacturers General companies. Amgen Inc. is the larger, with a market value of $248.8B against $101.0B — 2.5× the size. GSK PLC Sponsored ADR trades at the lower P/E: 16.7× against 26.6×. Amgen Inc. grew revenue faster over the last twelve months: 8.15% against 6.90%. Amgen Inc. has the higher net margin (24.1% vs 13.0%) and the higher return on invested capital (14.3% vs 9.61%). Both pay a dividend; GSK PLC Sponsored ADR yields more (3.60% vs 2.15%). Across the 23 metrics below, GSK PLC Sponsored ADR leads on 13 and Amgen Inc. on 10.

Valuation

Metric AMGN GSK Drug Manufacturers General median
P/E 26.57 16.73 26.57
P/S 6.42 2.25 3.49
P/B 21.38 4.09 5.20
Price to free cash flow 27.32 11.44 21.34
EV/EBITDA 17.63 10.56 14.80
EV/Sales 7.47 2.87 4.09
Earnings yield 3.76% 5.98% 2.40%
Free cash flow yield 3.66% 8.74% 4.43%

Profitability

Metric AMGN GSK Drug Manufacturers General median
Gross margin 70.90% 72.64% 73.01%
Operating margin 32.41% 17.95% 18.34%
Net margin 24.14% 13.02% 7.31%
Free cash flow margin 24.63% 19.65% 18.52%
Return on equity 78.35% 25.48% 5.80%
Return on assets 10.09% 6.53% 2.28%
Return on invested capital 14.29% 9.61% 6.26%

Growth

Metric AMGN GSK Drug Manufacturers General median
Revenue growth (TTM) 8.15% 6.90% 6.72%
EPS growth (last fiscal year) 88.23% 133.96% 21.81%
Revenue growth, 5-year CAGR 7.65% (0.32%) 4.75%
Net income growth, 5-year CAGR 1.20% 0.42% 0.00%

Health

Metric AMGN GSK Drug Manufacturers General median
Debt to equity 3.76 1.29 0.63
Current ratio 1.48 0.86 1.39
Net debt to EBITDA 2.94 1.39 1.15

Dividend

Metric AMGN GSK Drug Manufacturers General median
Dividend yield 2.15% 3.60% 2.31%
Payout ratio 0.58 0.61 0.59

Size

Metric AMGN GSK Drug Manufacturers General median
Market cap 248.84b 101.04b 131.21b

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