In the dynamic world of healthcare, AstraZeneca PLC (AZN) and Amgen Inc. (AMGN) stand out as titans within the drug manufacturing sector. Both companies are heavily involved in innovative therapeutic solutions, focusing on diverse areas such as oncology and inflammation. Their overlapping market presence makes this comparison particularly relevant for investors looking to capitalize on advancements in biopharmaceuticals. Join me as we delve into the strengths and potential of these two giants to determine which company may be the more intriguing investment opportunity.
Table of contents
Company Overview
AstraZeneca PLC Overview
AstraZeneca PLC, headquartered in Cambridge, UK, focuses on the discovery, development, manufacture, and commercialization of prescription medicines. With a market cap of approximately $287.5B, it operates in the healthcare sector, specifically within the Drug Manufacturers – General industry. The company’s portfolio includes a diverse range of products targeting oncology, cardiovascular, renal, and metabolic diseases. AstraZeneca’s strategic collaborations with organizations like Neurimmune AG and BenevolentAI aim to enhance drug discovery and development, showcasing its commitment to innovation. Under the leadership of CEO Pascal Soriot, AstraZeneca continues to expand its global reach, serving both primary and specialty care markets across multiple continents.
Amgen Inc. Overview
Amgen Inc. is a leading biotechnology company based in Thousand Oaks, California, with a market cap of around $186B. It specializes in the discovery, development, and manufacturing of human therapeutics across various therapeutic areas, including oncology, inflammation, and cardiovascular health. Amgen’s extensive product lineup features treatments for conditions like rheumatoid arthritis and osteoporosis, demonstrating its focus on addressing significant healthcare needs. CEO Robert A. Bradway oversees Amgen’s operations, which emphasize innovation through strategic partnerships with firms like Novartis and Eli Lilly. The company also engages in direct-to-consumer initiatives, diversifying its distribution channels.
Key similarities and differences
Both AstraZeneca and Amgen operate in the healthcare sector, focusing on developing innovative therapeutics. However, AstraZeneca has a broader portfolio that includes a substantial emphasis on oncology and rare diseases, while Amgen’s strength lies in biotechnology and a diverse array of therapeutic areas. Additionally, AstraZeneca engages more in collaborative drug discovery partnerships compared to Amgen’s focus on established therapeutic products and direct consumer channels.
Income Statement Comparison
In this section, I present a comparison of the income statements for AstraZeneca PLC (AZN) and Amgen Inc. (AMGN) for the most recent fiscal year. The table below highlights key financial metrics.
| Metric | AstraZeneca PLC (AZN) | Amgen Inc. (AMGN) |
|---|---|---|
| Market Cap | 287.48B | 186.02B |
| Revenue | 54.07B | 33.42B |
| EBITDA | 15.44B | 13.36B |
| EBIT | 10.37B | 7.76B |
| Net Income | 7.04B | 4.09B |
| EPS | 1.14 | 7.62 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, AstraZeneca’s revenue surged to 54.07B, marking a substantial increase compared to prior years, while Amgen’s revenue also showed growth at 33.42B. AstraZeneca’s net income rose to 7.04B, reflecting solid profitability, although Amgen’s net income decreased to 4.09B, indicating some challenges. Both companies maintain healthy EBITDA margins, but Amgen’s EPS remains significantly higher, suggesting better returns per share despite its lower net income. Overall, AstraZeneca demonstrates robust growth, while Amgen’s performance suggests a need for strategic adjustments to regain momentum.
Financial Ratios Comparison
The following table presents a comparative overview of key financial metrics and ratios for AstraZeneca PLC (AZN) and Amgen Inc. (AMGN). This analysis can help investors assess the relative strengths and weaknesses of each company.
| Metric | AstraZeneca (AZN) | Amgen (AMGN) |
|---|---|---|
| ROE | 17.25% | 69.59% |
| ROIC | 10.30% | 8.90% |
| P/E | 28.87 | 34.48 |
| P/B | 4.98 | 24.73 |
| Current Ratio | 0.93 | 1.26 |
| Quick Ratio | 0.74 | 0.95 |
| D/E | 0.74 | 10.36 |
| Debt-to-Assets | 28.95% | 66.59% |
| Interest Coverage | 5.95 | 2.30 |
| Asset Turnover | 0.52 | 0.36 |
| Fixed Asset Turnover | 4.64 | 5.11 |
| Payout Ratio | 65.80% | 117.14% |
| Dividend Yield | 2.28% | 3.43% |
Interpretation of Financial Ratios
AstraZeneca presents a more favorable ROE and interest coverage ratio compared to Amgen, suggesting better profitability and financial stability. However, Amgen’s significantly higher ROE indicates exceptional returns on equity, albeit with high debt levels reflected in its D/E ratio. The payout ratio for Amgen is concerning, as it exceeds 100%, raising questions about sustainability. Investors should weigh these factors carefully when considering potential investments in either company.
Dividend and Shareholder Returns
AstraZeneca PLC (AZN) has a dividend payout ratio of approximately 66% and offers a dividend yield of about 2.28%. With a consistent increase in its dividend per share, AZN also engages in share buybacks, providing additional shareholder value. Conversely, Amgen Inc. (AMGN) has a lower payout ratio of around 68% with a yield of 2.96%. Though both companies distribute dividends, the sustainability of these distributions, alongside share buybacks, supports long-term value creation for shareholders.
Strategic Positioning
AstraZeneca PLC (AZN) and Amgen Inc. (AMGN) are key players in the biopharmaceutical industry, both focusing on innovative therapies. AZN holds a significant market share with products like Tagrisso and Imfinzi, competing robustly against AMGN’s portfolio, which includes Enbrel and Prolia. The competitive pressure remains high due to ongoing technological advancements and regulatory changes. Both companies must navigate potential disruptions effectively to maintain their market positions and capitalize on growth opportunities.
Stock Comparison
In this section, I will analyze the weekly stock price movements of AstraZeneca PLC (AZN) and Amgen Inc. (AMGN) over the past year, highlighting key price dynamics and overall trading behaviors.
Trend Analysis
AstraZeneca PLC (AZN): Over the past year, AZN’s stock price has increased by 35.6%, indicating a strong bullish trend. The stock experienced notable highs at $92.72 and lows at $62.26, with an acceleration in its price movement. The standard deviation of 6.87 reflects moderate volatility. In the recent analysis period from September 14, 2025, to November 30, 2025, the stock rose by 16.54% with a standard deviation of 5.33, confirming continued bullish momentum.
Amgen Inc. (AMGN): AMGN’s stock has appreciated by 14.01% over the past year, also reflecting a bullish trend. The highest price recorded was $345.46, while the lowest was $261.22. Similar to AZN, AMGN shows signs of acceleration with a standard deviation of 21.35, indicating higher volatility. During the recent period from September 14, 2025, to November 30, 2025, AMGN’s price surged by 24.99%, with a significant standard deviation of 23.6, underscoring a strong bullish trend and increased trading activity.
Analyst Opinions
Recent recommendations for AstraZeneca PLC (AZN) and Amgen Inc. (AMGN) have both garnered a “B+” rating. Analysts suggest a cautious approach, with a consensus leaning towards a “buy” for both stocks in 2025. Key arguments highlight strong return on equity and assets, although concerns about price-to-earnings ratios persist. Analysts emphasize AZN’s robust discounted cash flow score of 4 and AMGN’s impressive score of 5, indicating solid growth potential in the biotech sector. Overall, the sentiment remains optimistic amid market volatility.
Stock Grades
In the current market landscape, let’s examine the latest stock ratings for AstraZeneca PLC (AZN) and Amgen Inc. (AMGN) to help inform your investment decisions.
AstraZeneca PLC Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | upgrade | Buy | 2025-02-13 |
| UBS | upgrade | Neutral | 2024-11-20 |
| Erste Group | upgrade | Buy | 2024-09-11 |
| TD Cowen | maintain | Buy | 2024-08-12 |
| Argus Research | maintain | Buy | 2024-05-30 |
| BMO Capital | maintain | Outperform | 2024-04-26 |
| Deutsche Bank | upgrade | Hold | 2024-04-16 |
| BMO Capital | maintain | Outperform | 2024-02-12 |
| Deutsche Bank | downgrade | Hold | 2024-02-08 |
| Jefferies | downgrade | Hold | 2024-01-03 |
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 |
Overall, AstraZeneca shows a positive trend with multiple upgrades to “Buy” from reliable sources, indicating a growing confidence in its performance. In contrast, Amgen’s grades remain stable, with several maintain actions suggesting that analysts see it as a steady, albeit cautious investment.
Target Prices
The current consensus target prices from reliable analysts suggest favorable outlooks for both AstraZeneca PLC (AZN) and Amgen Inc. (AMGN).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| AstraZeneca PLC | 97 | 97 | 97 |
| Amgen Inc. | 400 | 315 | 353.5 |
AstraZeneca’s consensus target is slightly above its current price of 92.72, while Amgen’s consensus of 353.5 indicates significant upside potential from its current price of 345.46. Overall, analysts maintain a positive outlook for both companies.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of AstraZeneca PLC (AZN) and Amgen Inc. (AMGN), providing a clear comparison of their current positions in the market.
| Criterion | AstraZeneca PLC (AZN) | Amgen Inc. (AMGN) |
|---|---|---|
| Diversification | Strong product portfolio across multiple disease areas | Focus on inflammation, oncology, and bone health |
| Profitability | Net Profit Margin: 13.0% | Net Profit Margin: 23.8% |
| Innovation | High R&D investment, strong pipeline | Robust pipeline with multiple collaborations |
| Global presence | Operations in multiple regions worldwide | Strong presence in North America and Europe |
| Market Share | Significant in oncology and respiratory sectors | Leading position in biologics |
| Debt level | Debt to Equity Ratio: 0.73 | Debt to Equity Ratio: 10.36 |
Key takeaways indicate that while AstraZeneca showcases strong diversification and innovation, Amgen leads in profitability and has a robust market share in biologics. Investors should weigh these factors carefully when considering investments.
Risk Analysis
The following table presents a comprehensive overview of the risks associated with AstraZeneca PLC and Amgen Inc. for the most recent fiscal year.
| Metric | AstraZeneca PLC (AZN) | Amgen Inc. (AMGN) |
|---|---|---|
| Market Risk | Moderate | Moderate |
| Regulatory Risk | High | High |
| Operational Risk | Moderate | Moderate |
| Environmental Risk | Moderate | Moderate |
| Geopolitical Risk | High | High |
Both AstraZeneca and Amgen face significant regulatory and geopolitical risks, particularly in light of ongoing policy changes affecting the healthcare sector. With increasing scrutiny on drug pricing and market access, these factors could heavily impact their profitability and market position.
Which one to choose?
When comparing AstraZeneca PLC (AZN) and Amgen Inc. (AMGN), both companies exhibit strong fundamentals, yet they cater to different investor appetites. AZN shows a higher gross profit margin of 81.12% for 2024, while AMGN stands at 61.53%. In terms of profitability, AMGN’s net profit margin of 23.83% significantly outperforms AZN’s 12.98%. However, AZN’s recent stock trend is bullish with a 35.6% price increase over the past year compared to AMGN’s 14.01%. Analysts rate both stocks as B+, indicating a balanced outlook.
For growth-oriented investors, AZN may be more appealing due to its aggressive stock performance, while those seeking stability might prefer AMGN’s solid profitability metrics. Both companies face industry-related risks, such as competition and potential market volatility.
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 AstraZeneca PLC and Amgen Inc. to enhance your investment decisions:
