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 $248.8B against $134.8B — 1.8× the size. Novo Nordisk A/S trades at the lower P/E: 9.9× against 26.6×. Novo Nordisk A/S grew revenue faster over the last twelve months: 13.2% against 8.15%. Novo Nordisk A/S has the higher net margin (35.5% vs 24.1%) and the higher return on invested capital (28.7% vs 14.3%). Both pay a dividend; Novo Nordisk A/S yields more (4.45% vs 2.15%). 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 26.57 9.86 26.57
P/S 6.42 3.48 3.49
P/B 21.38 5.20 5.20
Price to free cash flow 27.32 23.51 21.34
EV/EBITDA 17.63 7.29 14.80
EV/Sales 7.47 3.75 4.09
Earnings yield 3.76% 10.14% 2.40%
Free cash flow yield 3.66% 4.25% 4.43%

Profitability

Metric AMGN NVO Drug Manufacturers General median
Gross margin 70.90% 80.73% 73.01%
Operating margin 32.41% 43.36% 18.34%
Net margin 24.14% 35.47% 7.31%
Free cash flow margin 24.63% 14.79% 18.52%
Return on equity 78.35% 60.84% 5.80%
Return on assets 10.09% 22.00% 2.28%
Return on invested capital 14.29% 28.67% 6.26%

Growth

Metric AMGN NVO Drug Manufacturers General median
Revenue growth (TTM) 8.15% 13.15% 6.72%
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 3.76 0.63 0.63
Current ratio 1.48 0.87 1.39
Net debt to EBITDA 2.94 0.65 1.15

Dividend

Metric AMGN NVO Drug Manufacturers General median
Dividend yield 2.15% 4.45% 2.31%
Payout ratio 0.58 0.44 0.59

Size

Metric AMGN NVO Drug Manufacturers General median
Market cap 248.84b 134.84b 131.21b

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