Amgen Inc. (AMGN) vs Novo Nordisk A/S (NVO)

Amgen Inc. and Novo Nordisk A/S are both Drug Manufacturers General companies. Amgen Inc. is the larger, with a market value of $234.7B against $131.2B — 1.8× the size. Novo Nordisk A/S trades at the lower P/E: 9.5× against 26.7×. Novo Nordisk A/S grew revenue faster over the last twelve months: 13.2% against 9.10%. Novo Nordisk A/S has the higher net margin (35.5% vs 23.0%) and the higher return on invested capital (28.7% vs 13.0%). Both pay a dividend; Novo Nordisk A/S yields more (4.63% vs 2.30%). Across the 23 metrics below, Novo Nordisk A/S leads on 19 and Amgen Inc. on 4.

Valuation

Metric AMGN NVO Drug Manufacturers General median
P/E 26.66 9.49 24.54
P/S 6.13 3.35 3.39
P/B 19.98 5.00 5.00
Price to free cash flow 23.98 22.63 16.55
EV/EBITDA 16.79 7.04 13.82
EV/Sales 7.27 3.62 4.03
Earnings yield 3.75% 10.53% 2.98%
Free cash flow yield 4.17% 4.42% 4.46%

Profitability

Metric AMGN NVO Drug Manufacturers General median
Gross margin 69.52% 80.73% 72.77%
Operating margin 29.99% 43.36% 18.77%
Net margin 22.95% 35.47% 8.27%
Free cash flow margin 26.71% 14.79% 17.18%
Return on equity 91.47% 60.84% 5.87%
Return on assets 9.53% 22.00% 2.57%
Return on invested capital 12.98% 28.67% 6.11%

Growth

Metric AMGN NVO Drug Manufacturers General median
Revenue growth (TTM) 9.10% 13.15% 6.66%
EPS growth (last fiscal year) 88.23% 6.40% 21.81%
Revenue growth, 5-year CAGR 7.65% 19.20% 4.75%
Net income growth, 5-year CAGR 1.20% 19.16% 0.00%

Health

Metric AMGN NVO Drug Manufacturers General median
Debt to equity 4.90 0.63 0.63
Current ratio 1.37 0.87 1.32
Net debt to EBITDA 2.94 0.65 1.15

Dividend

Metric AMGN NVO Drug Manufacturers General median
Dividend yield 2.30% 4.63% 2.33%
Payout ratio 0.62 0.44 0.59

Size

Metric AMGN NVO Drug Manufacturers General median
Market cap 234.65b 131.23b 123.73b

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