Amgen Inc. (AMGN) vs Eli Lilly and Company (LLY)

Amgen Inc. and Eli Lilly and Company are both Drug Manufacturers General companies. Eli Lilly and Company is the larger, with a market value of $1.11T against $219.1B — 5.1× the size. Amgen Inc. trades at the lower P/E: 25.6× against 39.7×. Eli Lilly and Company grew revenue faster over the last twelve months: 49.6% against 9.10%. Eli Lilly and Company has the higher net margin (33.5% vs 23.0%) and the higher return on invested capital (26.3% vs 13.0%). Both pay a dividend; Amgen Inc. yields more (3.16% vs 0.72%). Across the 23 metrics below, Eli Lilly and Company leads on 12 and Amgen Inc. on 11.

Valuation

Metric AMGN LLY Drug Manufacturers General median
P/E 25.56 39.71 24.72
P/S 5.88 13.26 3.35
P/B 19.16 31.17 5.00
Price to free cash flow 22.98 51.79 17.68
EV/EBITDA 16.20 30.84 13.91
EV/Sales 7.01 13.83 3.95
Earnings yield 3.91% 2.52% 2.92%
Free cash flow yield 4.35% 1.93% 4.42%

Profitability

Metric AMGN LLY Drug Manufacturers General median
Gross margin 69.52% 83.40% 72.77%
Operating margin 29.99% 42.22% 18.90%
Net margin 22.95% 33.53% 8.27%
Free cash flow margin 26.71% 22.83% 17.25%
Return on equity 91.47% 102.29% 6.97%
Return on assets 9.53% 21.97% 2.76%
Return on invested capital 12.98% 26.33% 6.30%

Growth

Metric AMGN LLY Drug Manufacturers General median
Revenue growth (TTM) 9.10% 49.58% 6.79%
EPS growth (last fiscal year) 88.23% 95.99% —
Revenue growth, 5-year CAGR 7.65% 21.58% 3.98%
Net income growth, 5-year CAGR 1.20% 27.22% 0.42%

Health

Metric AMGN LLY Drug Manufacturers General median
Debt to equity 4.90 1.62 0.63
Current ratio 1.37 1.35 1.32
Net debt to EBITDA 2.94 1.19 1.15

Dividend

Metric AMGN LLY Drug Manufacturers General median
Dividend yield 3.16% 0.72% 3.57%
Payout ratio 0.55 0.59 0.53

Size

Metric AMGN LLY Drug Manufacturers General median
Market cap 219.05b 1.11t 125.91b

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