In the ever-evolving landscape of healthcare, Amgen Inc. and Intuitive Surgical, Inc. stand out as formidable players, each innovating within their respective niches. Amgen is a leader in biopharmaceuticals, focusing on critical therapeutic areas, while Intuitive Surgical has revolutionized surgical procedures with its advanced robotic systems. This comparison will delve into their strategies, market positions, and growth potential. Join me as we identify which of these companies presents the most compelling investment opportunity.
Table of contents
Company Overview
Amgen Inc. Overview
Amgen Inc. is a leading biotechnology company dedicated to discovering, developing, manufacturing, and delivering innovative human therapeutics worldwide. With a focus on addressing significant medical needs in areas such as oncology, inflammation, cardiovascular disease, and more, Amgen’s product portfolio includes well-known therapies like Enbrel, Neulasta, and Repatha. Established in 1980 and headquartered in Thousand Oaks, California, Amgen operates within the healthcare sector and has built strong collaborations with various pharmaceutical firms to enhance its research capabilities. As of now, the company boasts a market capitalization of approximately $186B, reflecting its robust position in the biotechnology space.
Intuitive Surgical, Inc. Overview
Intuitive Surgical, Inc. specializes in the development and manufacturing of robotic surgical systems that enhance the quality and accessibility of minimally invasive surgical care. The company’s flagship product, the da Vinci Surgical System, is complemented by the Ion endoluminal system, which allows for minimally invasive biopsies. Founded in 1995 and headquartered in Sunnyvale, California, Intuitive Surgical has established itself as a leader in the medical instruments and supplies industry, with a market capitalization of roughly $205B. Their commitment to innovation is evident through a suite of services and integrated digital capabilities that support healthcare providers in maximizing the benefits of their surgical technologies.
Key similarities and differences
Both Amgen and Intuitive Surgical operate within the healthcare sector, emphasizing innovation and advanced technologies. However, while Amgen focuses on pharmaceuticals and therapeutic treatments, Intuitive Surgical specializes in robotic and minimally invasive surgical systems. Their business models differ significantly, with Amgen relying on drug development and commercialization, whereas Intuitive emphasizes surgical technology and support services.
Income Statement Comparison
The following table presents a detailed comparison of the income statements of Amgen Inc. and Intuitive Surgical, Inc. for the fiscal year ending December 31, 2024.
| Metric | [Amgen Inc. (AMGN)] | [Intuitive Surgical, Inc. (ISRG)] |
|---|---|---|
| Market Cap | 186.02B | 204.86B |
| Revenue | 33.42B | 8.35B |
| EBITDA | 13.36B | 2.81B |
| EBIT | 7.76B | 2.35B |
| Net Income | 4.09B | 2.32B |
| EPS | 7.62 | 6.54 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In 2024, Amgen’s revenue increased significantly to 33.42B, marking a notable growth compared to the previous year, while Intuitive Surgical also reported a solid increase in revenue to 8.35B, albeit at a slower growth rate. Amgen’s net income of 4.09B reflects a decrease from the prior year, indicating pressure on profit margins, likely due to rising operational costs. In contrast, Intuitive Surgical’s net income of 2.32B demonstrates stable margins, suggesting effective cost management despite a competitive landscape. Overall, while Amgen shows potential for recovery, Intuitive Surgical maintains its growth trajectory, setting a positive outlook for both companies.
Financial Ratios Comparison
The following table compares key financial ratios and metrics for Amgen Inc. (AMGN) and Intuitive Surgical, Inc. (ISRG) based on the most recent data available.
| Metric | AMGN | ISRG |
|---|---|---|
| ROE | 69.59% | 14.13% |
| ROIC | 8.90% | 11.99% |
| P/E | 34.48 | 79.82 |
| P/B | 23.99 | 11.28 |
| Current Ratio | 1.26 | 4.07 |
| Quick Ratio | 0.95 | 3.22 |
| D/E | 10.36 | 0.01 |
| Debt-to-Assets | 66.29% | 0.78% |
| Interest Coverage | 2.30 | N/A |
| Asset Turnover | 0.36 | 0.44 |
| Fixed Asset Turnover | 5.11 | 1.75 |
| Payout Ratio | 118.14% | 0% |
| Dividend Yield | 3.43% | 0% |
Interpretation of Financial Ratios
Amgen shows strong return metrics (ROE of 69.59%) but has a high debt-to-equity ratio (10.36), indicating potential risk due to leverage. In contrast, Intuitive Surgical maintains a solid current ratio (4.07) and minimal debt, reflecting strong liquidity and financial stability. However, its high P/E ratio (79.82) suggests that it may be overvalued relative to earnings. Investors should weigh these factors carefully when considering each company for their portfolio.
Dividend and Shareholder Returns
Amgen Inc. (AMGN) maintains a robust dividend strategy, with a current yield of approximately 3.43% and a payout ratio around 117%. While this signals a strong commitment to returning value to shareholders, the elevated payout ratio raises concerns about sustainability, especially amidst fluctuating free cash flows. Conversely, Intuitive Surgical, Inc. (ISRG) does not pay dividends, opting instead to reinvest profits for growth and innovation, which may enhance long-term shareholder value despite the absence of immediate returns. The choice to engage in share buybacks reflects a strategic focus on improving share price performance for both companies.
Strategic Positioning
Amgen Inc. (AMGN) holds a significant share in the drug manufacturing sector, focusing on therapies for diverse health issues, including oncology and cardiovascular diseases. In contrast, Intuitive Surgical, Inc. (ISRG) leads in the medical instruments field with its da Vinci Surgical System, facilitating advanced minimally invasive surgeries. Both companies face competitive pressure from emerging biotech firms and technological disruptions, necessitating continuous innovation to maintain their market positions.
Stock Comparison
Over the past year, both Amgen Inc. (AMGN) and Intuitive Surgical, Inc. (ISRG) have exhibited significant price movements, reflecting robust trading dynamics and investor sentiment.
Trend Analysis
For Amgen Inc. (AMGN), the stock has experienced a price change of +14.01% over the past year, indicating a bullish trend. The stock reached a notable high of 345.46 and a low of 261.22, with an acceleration in price momentum. The standard deviation of 21.35 suggests some volatility, but the overall trend appears to be strengthening.
In the recent period from September 14 to November 30, 2025, AMGN saw a price change of +24.99%, further confirming the bullish trend. The trend slope of 6.31 indicates increasing momentum, and the volatility remains notable with a standard deviation of 23.6.
For Intuitive Surgical, Inc. (ISRG), the overall price change over the past year is an impressive +77.82%, also reflecting a bullish trend. The stock has fluctuated between a high of 595.55 and a low of 322.5, demonstrating significant price action. The acceleration status indicates that the upward trend is gaining strength, supported by a standard deviation of 65.43, which highlights a higher volatility profile.
In the recent analysis period, from September 14 to November 30, ISRG recorded a price change of +27.53%. With a trend slope of 14.61, this stock also shows strong upward momentum, and the standard deviation of 56.6 signals notable volatility.
Both stocks are on a bullish trajectory, but investors should remain vigilant regarding potential volatility as they navigate their investment decisions.
Analyst Opinions
Recent analyst recommendations for Amgen Inc. (AMGN) indicate a “B+” rating, suggesting a strong buy position. Analysts praise its solid return on equity and assets, with high scores in these areas. In contrast, Intuitive Surgical, Inc. (ISRG) holds a “B-” rating, reflecting a hold recommendation due to lower performance in price-to-earnings metrics despite its strong asset return. The consensus for AMGN is a buy for 2025, while ISRG leans towards hold, reflecting cautious optimism amidst market volatility.
Stock Grades
In today’s analysis, I will present the latest stock ratings for Amgen Inc. (AMGN) and Intuitive Surgical, Inc. (ISRG), provided by reputable 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 |
Intuitive Surgical, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | maintain | Neutral | 2025-10-23 |
| Truist Securities | maintain | Buy | 2025-10-22 |
| RBC Capital | maintain | Outperform | 2025-10-22 |
| Piper Sandler | maintain | Overweight | 2025-10-22 |
| Wells Fargo | maintain | Overweight | 2025-10-22 |
| Raymond James | maintain | Outperform | 2025-10-22 |
| BTIG | maintain | Buy | 2025-10-22 |
| Truist Securities | maintain | Buy | 2025-10-15 |
| BTIG | maintain | Buy | 2025-10-13 |
| Evercore ISI Group | maintain | In Line | 2025-10-07 |
Overall, the grades for Amgen show a mix of “Overweight” and “Neutral,” indicating a cautious optimism but also some underlying concerns about performance. On the other hand, Intuitive Surgical displays a stronger trend with multiple “Buy” and “Outperform” ratings, suggesting a favorable outlook among analysts. As always, I recommend evaluating these insights in the context of your investment strategy and risk tolerance.
Target Prices
The consensus target prices for Amgen Inc. (AMGN) and Intuitive Surgical, Inc. (ISRG) indicate positive expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Amgen Inc. | 400 | 315 | 353.5 |
| Intuitive Surgical, Inc. | 685 | 575 | 618 |
For Amgen, the consensus target price of 353.5 is slightly below its current price of 345.46, suggesting limited upside potential. Conversely, Intuitive Surgical’s target consensus of 618 exceeds its current price of 573.48, indicating a more favorable outlook.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Amgen Inc. (AMGN) and Intuitive Surgical, Inc. (ISRG).
| Criterion | Amgen Inc. (AMGN) | Intuitive Surgical, Inc. (ISRG) |
|---|---|---|
| Diversification | Strong product pipeline in various therapeutic areas | Focused on surgical robotics with limited diversification |
| Profitability | High net profit margin (24%) | Moderate net profit margin (25%) |
| Innovation | Continuous R&D in biotechnology | Leader in robotic-assisted surgery technology |
| Global presence | Operates in over 100 countries | Significant international sales but less global reach |
| Market Share | Significant in biotechnology (top 5) | Leading in robotic surgery market |
| Debt level | High debt-to-equity ratio (10.36) | Minimal debt (0.01) |
Key takeaways indicate that while Amgen boasts a diverse portfolio and strong profitability, it carries a high debt level, posing potential risks. Conversely, Intuitive Surgical excels in innovation and profitability with minimal debt, though it lacks diversification.
Risk Analysis
In the table below, I’ve outlined key risks for Amgen Inc. (AMGN) and Intuitive Surgical, Inc. (ISRG) based on the most recent data.
| Metric | Amgen Inc. | Intuitive Surgical, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | High | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant market and regulatory risks, especially in the healthcare sector. Amgen’s larger market presence provides some stability, while Intuitive Surgical’s reliance on innovative technologies exposes it to higher operational risks.
Which one to choose?
When comparing Amgen Inc. (AMGN) and Intuitive Surgical, Inc. (ISRG), both companies present unique strengths. AMGN boasts a strong gross profit margin of 62% and a solid net profit margin of 12%, accompanied by a favorable B+ rating from analysts. Its recent stock trend has been bullish, with a 14% price increase over the last year. On the other hand, ISRG shows impressive growth, with a remarkable 78% price change over the same period and a current ratio of 4.07, indicating excellent liquidity, but it carries a higher price-to-earnings ratio of 79.8, reflecting its growth expectations.
Investors focused on stability and dividends may prefer AMGN, given its consistent profitability and cash flow, while those seeking high growth potential might favor ISRG despite its higher valuation risks.
Both companies face industry challenges, including competition and market dependence, impacting their future performance.
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 Intuitive Surgical, Inc. to enhance your investment decisions:
