In the dynamic landscape of healthcare, two prominent players, Amgen Inc. (AMGN) and Gilead Sciences, Inc. (GILD), stand out in the drug manufacturing industry. Both companies leverage innovation to address critical medical needs, yet they focus on different therapeutic areas. This comparison will delve into their market strategies, product portfolios, and growth potential. As an investor, understanding which company presents the more compelling opportunity could be pivotal for your portfolio. Let’s explore further to uncover the more interesting investment choice.
Table of contents
Company Overview
Amgen Inc. Overview
Amgen Inc. is a leading biopharmaceutical company that discovers, develops, manufactures, and delivers human therapeutics across various therapeutic areas. With a market capitalization of approximately $186B, Amgen focuses on conditions such as oncology, inflammation, and cardiovascular diseases. Its portfolio includes well-known products like Enbrel for autoimmune diseases and Repatha for cholesterol management. The company has established numerous collaborations with other organizations, aiming to innovate and expand its therapeutic offerings. Headquartered in Thousand Oaks, California, Amgen emphasizes a commitment to improving health outcomes through scientific advancements.
Gilead Sciences, Inc. Overview
Gilead Sciences, Inc. operates as a biopharmaceutical company that targets unmet medical needs globally. With a market cap around $156B, Gilead’s product range includes treatments for HIV/AIDS, liver diseases, and oncology, featuring notable drugs like Biktarvy and Veklury. The company is heavily involved in research collaborations to enhance its pipeline and drive innovation. Based in Foster City, California, Gilead is dedicated to addressing pressing health challenges and expanding access to its therapies.
Key similarities and differences
Both Amgen and Gilead operate in the biopharmaceutical sector and share a focus on developing innovative treatments for critical health issues. However, Amgen leans towards a broader range of therapeutic areas, including bone health and cardiovascular diseases, while Gilead specializes more in infectious diseases and oncology. Their collaborative approaches to research are also distinct, reflecting different strategic priorities in addressing healthcare challenges.
Income Statement Comparison
The following table presents a comparison of the most recent income statements for Amgen Inc. and Gilead Sciences, Inc., highlighting their financial performance metrics.
| Metric | Amgen Inc. | Gilead Sciences, Inc. |
|---|---|---|
| Market Cap | 186B | 156B |
| Revenue | 33.42B | 28.75B |
| EBITDA | 13.36B | 4.43B |
| EBIT | 7.76B | 1.67B |
| Net Income | 4.09B | 0.48B |
| EPS | 7.62 | 0.38 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In 2024, Amgen Inc. displayed robust revenue growth of approximately 18% from the previous year, while Gilead Sciences also saw an increase in revenue, though at a slower rate. Amgen’s EBITDA margin improved, reflecting efficient cost management, while Gilead’s margins remained under pressure, impacted by higher operating expenses. Notably, Gilead’s net income was significantly lower, indicating challenges in converting revenue to profit. Amgen’s performance indicates a strong position in the market, whereas Gilead may need to adjust its operational strategies to enhance profitability and efficiency.
Financial Ratios Comparison
The following table compares key financial ratios between Amgen Inc. (AMGN) and Gilead Sciences, Inc. (GILD) to help investors assess their relative performance and stability.
| Metric | AMGN | GILD |
|---|---|---|
| ROE | 69.59% | 2.48% |
| ROIC | 8.90% | 2.36% |
| P/E | 34.48 | 239.97 |
| P/B | 23.99 | 5.96 |
| Current Ratio | 1.26 | 1.60 |
| Quick Ratio | 0.95 | 1.45 |
| D/E | 10.36 | 1.38 |
| Debt-to-Assets | 66.29% | 40.22% |
| Interest Coverage | 2.30 | 1.70 |
| Asset Turnover | 0.36 | 0.49 |
| Fixed Asset Turnover | 5.11 | 5.31 |
| Payout ratio | 118.14% | 67.24% |
| Dividend yield | 3.43% | 3.77% |
Interpretation of Financial Ratios
Amgen displays significantly stronger returns on equity (ROE) and invested capital (ROIC) compared to Gilead, indicating better profitability. However, its high debt-to-equity (D/E) ratio suggests substantial leverage, which could pose risks, especially in volatile markets. Gilead, on the other hand, exhibits lower profitability metrics but maintains a healthier balance sheet with lower debt levels. Investors should weigh these factors carefully when considering investments.
Dividend and Shareholder Returns
Amgen Inc. (AMGN) offers a dividend yield of 3.43% with a payout ratio of approximately 118%, indicating potential sustainability risks. The firm also engages in share buybacks, which can enhance shareholder value if managed prudently. In contrast, Gilead Sciences, Inc. (GILD) pays a dividend yield of 3.77% with a lower payout ratio of around 67%, reflecting a more balanced distribution strategy. Both companies prioritize shareholder returns, suggesting a commitment to long-term value creation, albeit with differing levels of risk exposure.
Strategic Positioning
In the competitive landscape of the drug manufacturing industry, Amgen Inc. (AMGN) holds a market cap of $186B, reflecting a strong position with key products like Enbrel and Neulasta. Gilead Sciences, Inc. (GILD), with a market cap of $156B, competes closely, particularly in HIV and liver disease treatments. Both companies face pressure from emerging biopharmaceuticals and technological advancements that could disrupt traditional market dynamics, necessitating continual innovation and strategic partnerships to maintain their market shares.
Stock Comparison
Over the past year, both Amgen Inc. (AMGN) and Gilead Sciences, Inc. (GILD) have demonstrated significant price movements, reflecting dynamic trading environments and investor sentiment.
Trend Analysis
Amgen Inc. (AMGN) has experienced a price increase of 14.01% over the past twelve months. This indicates a bullish trend, supported by an acceleration in price movements. The stock reached a high of 345.46 and a low of 261.22, with a standard deviation of 21.35, suggesting notable volatility in its price. Recent performance from September 14, 2025, to November 30, 2025, shows an impressive 24.99% increase, further solidifying its upward trajectory.
Gilead Sciences, Inc. (GILD) has outperformed with a 51.05% price increase over the same period, also indicating a bullish trend with acceleration. The stock’s highest price was 126.64, while the lowest was 64.27, with a standard deviation of 18.65, reflecting moderate volatility. In the recent analysis from September 14, 2025, to November 30, 2025, GILD showed a 9.86% increase, indicating sustained growth, although it is experiencing slightly lower acceleration compared to its overall trend.
Analyst Opinions
Recent analyst recommendations for Amgen Inc. (AMGN) show a rating of B+, reflecting cautious optimism due to strong fundamentals but concerns about valuation metrics. Analysts note its excellent return on equity and assets. In contrast, Gilead Sciences, Inc. (GILD) has received an A- rating, with analysts praising its robust cash flow and profitability. The consensus for GILD is a buy, driven by its solid pipeline and market position. For AMGN, the consensus leans more towards a hold, as analysts weigh growth potential against current valuation risks.
Stock Grades
In this section, I present the latest stock ratings for Amgen Inc. (AMGN) and Gilead Sciences, Inc. (GILD) based on reliable data from recognized grading companies.
Amgen Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | maintain | Overweight | 2025-11-14 |
| Cantor Fitzgerald | maintain | Neutral | 2025-11-06 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-05 |
| Wells Fargo | maintain | Overweight | 2025-11-05 |
| B of A Securities | maintain | Underperform | 2025-09-26 |
| Piper Sandler | maintain | Overweight | 2025-08-25 |
| UBS | maintain | Neutral | 2025-08-06 |
| Citigroup | maintain | Neutral | 2025-08-06 |
| Morgan Stanley | maintain | Equal Weight | 2025-08-06 |
| B of A Securities | maintain | Underperform | 2025-07-23 |
Gilead Sciences, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | maintain | Buy | 2025-11-13 |
| Truist Securities | maintain | Buy | 2025-11-03 |
| JP Morgan | maintain | Overweight | 2025-10-31 |
| Needham | maintain | Buy | 2025-10-31 |
| Wells Fargo | maintain | Overweight | 2025-10-31 |
| RBC Capital | maintain | Sector Perform | 2025-10-31 |
| Cantor Fitzgerald | maintain | Overweight | 2025-10-31 |
| TD Cowen | maintain | Buy | 2025-10-23 |
| Citigroup | maintain | Buy | 2025-10-08 |
| JP Morgan | maintain | Overweight | 2025-09-16 |
Overall, both Amgen and Gilead have shown consistent ratings with a tendency towards maintaining or slightly adjusting their grades. Amgen has several maintain calls, indicating stability, while Gilead’s strong buy ratings suggest positive sentiment and confidence among analysts.
Target Prices
The consensus target prices for Amgen Inc. and Gilead Sciences, Inc. reflect optimistic expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Amgen Inc. | 400 | 315 | 353.5 |
| Gilead Sciences, Inc. | 147 | 105 | 130.4 |
Analysts expect Amgen’s stock to reach a consensus of 353.5, which is above its current price of 345.46. Gilead’s target consensus of 130.4 is also higher than its current price of 125.84, suggesting potential upside for both companies.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Amgen Inc. (AMGN) and Gilead Sciences, Inc. (GILD) based on their most recent performance metrics.
| Criterion | Amgen Inc. (AMGN) | Gilead Sciences, Inc. (GILD) |
|---|---|---|
| Diversification | High (varied portfolio across multiple therapeutic areas) | Moderate (focus on specific diseases) |
| Profitability | Strong (net profit margin: 24%) | Low (net profit margin: 2%) |
| Innovation | High (continuous R&D investment) | Moderate (some recent product launches) |
| Global presence | Extensive (operates in multiple countries) | Strong (international operations) |
| Market Share | Significant (leader in oncology and inflammation) | Moderate (strong in antiviral markets) |
| Debt level | High (debt-to-equity ratio: 10.36) | Moderate (debt-to-equity ratio: 1.38) |
In summary, Amgen showcases strong profitability and innovation, benefiting from a diverse product range. In contrast, Gilead faces challenges in profitability despite its solid market position in antiviral treatments, with a more focused approach.
Risk Analysis
The table below summarizes the key risks associated with Amgen Inc. and Gilead Sciences, Inc., two prominent players in the healthcare sector.
| Metric | Amgen Inc. (AMGN) | Gilead Sciences, Inc. (GILD) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | High | High |
| Operational Risk | Moderate | Moderate |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
In analyzing the risks, both companies face substantial regulatory challenges, especially in the evolving healthcare landscape. Additionally, Gilead’s higher market and geopolitical risks could impact its stability more significantly than Amgen’s.
Which one to choose?
In comparing Amgen Inc. (AMGN) and Gilead Sciences, Inc. (GILD), both companies show robust fundamentals but with differing strengths. Amgen has a solid market cap of 141B, with a price-to-earnings ratio of 34.48, while Gilead, valued at 115B, offers a lower P/E of 239.97, indicating potential overvaluation concerns. Amgen’s recent stock trend is bullish with a 14% increase over the last year, while Gilead has outperformed with a remarkable 51% gain. Analyst ratings favor Gilead with an A- compared to Amgen’s B+.
For growth-oriented investors, Gilead may appear more appealing due to its higher momentum and robust income growth trajectory. Conversely, those seeking stability and robust fundamentals might find Amgen a safer pick, despite its higher valuation metrics. Both face industry risks such as competition and regulatory pressures.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Amgen Inc. and Gilead Sciences, Inc. to enhance your investment decisions:
