Amgen Inc. (AMGN) vs Johnson & Johnson (JNJ)

Amgen Inc. and Johnson & Johnson are both Drug Manufacturers General companies. Johnson & Johnson is the larger, with a market value of $652.8B against $219.1B — 3.0× the size. Amgen Inc. trades at the lower P/E: 25.6× against 31.4×. Amgen Inc. grew revenue faster over the last twelve months: 9.10% against 8.06%. Amgen Inc. has the higher net margin (23.0% vs 21.5%) and the lower return on invested capital (13.0% vs 15.5%). Both pay a dividend; Amgen Inc. yields more (3.16% vs 3.07%). Across the 23 metrics below, Amgen Inc. leads on 15 and Johnson & Johnson on 8.

Valuation

Metric AMGN JNJ Drug Manufacturers General median
P/E 25.56 31.43 24.72
P/S 5.88 6.67 3.35
P/B 19.16 7.68 5.00
Price to free cash flow 22.98 28.73 17.68
EV/EBITDA 16.20 19.20 13.91
EV/Sales 7.01 6.84 3.95
Earnings yield 3.91% 3.18% 2.92%
Free cash flow yield 4.35% 3.48% 4.42%

Profitability

Metric AMGN JNJ Drug Manufacturers General median
Gross margin 69.52% 67.91% 72.77%
Operating margin 29.99% 27.69% 18.90%
Net margin 22.95% 21.48% 8.27%
Free cash flow margin 26.71% 23.20% 17.25%
Return on equity 91.47% 25.74% 6.97%
Return on assets 9.53% 10.67% 2.76%
Return on invested capital 12.98% 15.51% 6.30%

Growth

Metric AMGN JNJ Drug Manufacturers General median
Revenue growth (TTM) 9.10% 8.06% 6.79%
EPS growth (last fiscal year) 88.23% 90.50% —
Revenue growth, 5-year CAGR 7.65% 2.67% 3.98%
Net income growth, 5-year CAGR 1.20% 12.74% 0.42%

Health

Metric AMGN JNJ Drug Manufacturers General median
Debt to equity 4.90 0.44 0.63
Current ratio 1.37 1.09 1.32
Net debt to EBITDA 2.94 0.46 1.15

Dividend

Metric AMGN JNJ Drug Manufacturers General median
Dividend yield 3.16% 3.07% 3.57%
Payout ratio 0.55 0.93 0.53

Size

Metric AMGN JNJ Drug Manufacturers General median
Market cap 219.05b 652.82b 125.91b

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