Seek Returns logo

AMGN vs. GEHC: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AMGN and GEHC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AMGN’s market capitalization of 160.37 billion USD is substantially larger than GEHC’s 34.83 billion USD, indicating a significant difference in their market valuations.

GEHC carries a higher beta at 1.29, indicating it’s more sensitive to market moves, while AMGN (beta: 0.50) exhibits greater stability.

SymbolAMGNGEHC
Company NameAmgen Inc.GE HealthCare Technologies Inc.
CountryUSUS
SectorHealthcareHealthcare
IndustryDrug Manufacturers - GeneralMedical - Healthcare Information Services
CEORobert A. BradwayPeter J. Arduini
Price298.24 USD76.07 USD
Market Cap160.37 billion USD34.83 billion USD
Beta0.501.29
ExchangeNASDAQNASDAQ
IPO DateJune 17, 1983December 15, 2022
ADRNoNo

Historical Performance

This chart compares the performance of AMGN and GEHC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AMGN vs. GEHC: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AMGN

92.94%

Drug Manufacturers - General Industry

Max
95.59%
Q3
76.92%
Median
30.71%
Q1
8.97%
Min
-14.85%

In the upper quartile for the Drug Manufacturers - General industry, AMGN’s Return on Equity of 92.94% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

GEHC

25.87%

Medical - Healthcare Information Services Industry

Max
25.87%
Q3
8.12%
Median
2.99%
Q1
-18.32%
Min
-48.18%

In the upper quartile for the Medical - Healthcare Information Services industry, GEHC’s Return on Equity of 25.87% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AMGN vs. GEHC: A comparison of their ROE against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Return on Invested Capital

AMGN

9.53%

Drug Manufacturers - General Industry

Max
25.72%
Q3
17.89%
Median
11.47%
Q1
9.39%
Min
2.87%

AMGN’s Return on Invested Capital of 9.53% is in line with the norm for the Drug Manufacturers - General industry, reflecting a standard level of efficiency in generating profits from its capital base.

GEHC

8.77%

Medical - Healthcare Information Services Industry

Max
26.81%
Q3
8.81%
Median
2.09%
Q1
-11.56%
Min
-32.60%

GEHC’s Return on Invested Capital of 8.77% is in line with the norm for the Medical - Healthcare Information Services industry, reflecting a standard level of efficiency in generating profits from its capital base.

AMGN vs. GEHC: A comparison of their ROIC against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Net Profit Margin

AMGN

17.39%

Drug Manufacturers - General Industry

Max
34.51%
Q3
23.04%
Median
14.73%
Q1
11.78%
Min
2.18%

AMGN’s Net Profit Margin of 17.39% is aligned with the median group of its peers in the Drug Manufacturers - General industry. This indicates its ability to convert revenue into profit is typical for the sector.

GEHC

11.03%

Medical - Healthcare Information Services Industry

Max
39.13%
Q3
9.34%
Median
1.37%
Q1
-15.05%
Min
-39.66%

A Net Profit Margin of 11.03% places GEHC in the upper quartile for the Medical - Healthcare Information Services industry, signifying strong profitability and more effective cost management than most of its peers.

AMGN vs. GEHC: A comparison of their Net Profit Margin against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Operating Profit Margin

AMGN

21.82%

Drug Manufacturers - General Industry

Max
40.70%
Q3
28.90%
Median
23.41%
Q1
19.05%
Min
16.13%

AMGN’s Operating Profit Margin of 21.82% is around the midpoint for the Drug Manufacturers - General industry, indicating that its efficiency in managing core business operations is typical for the sector.

GEHC

13.99%

Medical - Healthcare Information Services Industry

Max
39.94%
Q3
11.27%
Median
3.94%
Q1
-9.81%
Min
-29.30%

An Operating Profit Margin of 13.99% places GEHC in the upper quartile for the Medical - Healthcare Information Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AMGN vs. GEHC: A comparison of their Operating Margin against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Profitability at a Glance

SymbolAMGNGEHC
Return on Equity (TTM)92.94%25.87%
Return on Assets (TTM)6.64%6.50%
Return on Invested Capital (TTM)9.53%8.77%
Net Profit Margin (TTM)17.39%11.03%
Operating Profit Margin (TTM)21.82%13.99%
Gross Profit Margin (TTM)63.00%41.96%

Financial Strength

Current Ratio

AMGN

1.17

Drug Manufacturers - General Industry

Max
1.67
Q3
1.37
Median
1.26
Q1
0.87
Min
0.39

AMGN’s Current Ratio of 1.17 aligns with the median group of the Drug Manufacturers - General industry, indicating that its short-term liquidity is in line with its sector peers.

GEHC

0.98

Medical - Healthcare Information Services Industry

Max
5.37
Q3
3.30
Median
1.91
Q1
1.37
Min
0.54

GEHC’s Current Ratio of 0.98 falls into the lower quartile for the Medical - Healthcare Information Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AMGN vs. GEHC: A comparison of their Current Ratio against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Debt-to-Equity Ratio

AMGN

9.24

Drug Manufacturers - General Industry

Max
2.95
Q3
2.44
Median
0.86
Q1
0.68
Min
0.09

With a Debt-to-Equity Ratio of 9.24, AMGN operates with exceptionally high leverage compared to the Drug Manufacturers - General industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

GEHC

1.00

Medical - Healthcare Information Services Industry

Max
1.14
Q3
0.65
Median
0.16
Q1
0.04
Min
0.00

GEHC’s leverage is in the upper quartile of the Medical - Healthcare Information Services industry, with a Debt-to-Equity Ratio of 1.00. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

AMGN vs. GEHC: A comparison of their D/E Ratio against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Interest Coverage Ratio

AMGN

3.19

Drug Manufacturers - General Industry

Max
27.46
Q3
14.40
Median
7.80
Q1
4.07
Min
1.67

In the lower quartile for the Drug Manufacturers - General industry, AMGN’s Interest Coverage Ratio of 3.19 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

GEHC

5.73

Medical - Healthcare Information Services Industry

Max
12.12
Q3
3.11
Median
1.20
Q1
-12.03
Min
-25.76

GEHC’s Interest Coverage Ratio of 5.73 is in the upper quartile for the Medical - Healthcare Information Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AMGN vs. GEHC: A comparison of their Interest Coverage against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Financial Strength at a Glance

SymbolAMGNGEHC
Current Ratio (TTM)1.170.98
Quick Ratio (TTM)0.880.76
Debt-to-Equity Ratio (TTM)9.241.00
Debt-to-Asset Ratio (TTM)0.640.27
Net Debt-to-EBITDA Ratio (TTM)3.921.92
Interest Coverage Ratio (TTM)3.195.73

Growth

The following charts compare key year-over-year (YoY) growth metrics for AMGN and GEHC. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AMGN vs. GEHC: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AMGN vs. GEHC: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AMGN vs. GEHC: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AMGN

3.10%

Drug Manufacturers - General Industry

Max
8.72%
Q3
4.10%
Median
3.34%
Q1
1.89%
Min
0.00%

AMGN’s Dividend Yield of 3.10% is consistent with its peers in the Drug Manufacturers - General industry, providing a dividend return that is standard for its sector.

GEHC

0.17%

Medical - Healthcare Information Services Industry

Max
7.19%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 0.17%, GEHC offers a more attractive income stream than most of its peers in the Medical - Healthcare Information Services industry, signaling a strong commitment to shareholder returns.

AMGN vs. GEHC: A comparison of their Dividend Yield against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Dividend Payout Ratio

AMGN

82.64%

Drug Manufacturers - General Industry

Max
266.46%
Q3
78.91%
Median
60.27%
Q1
43.74%
Min
0.00%

AMGN’s Dividend Payout Ratio of 82.64% is in the upper quartile for the Drug Manufacturers - General industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

GEHC

2.61%

Medical - Healthcare Information Services Industry

Max
130.89%
Q3
2.61%
Median
0.00%
Q1
0.00%
Min
0.00%

GEHC’s Dividend Payout Ratio of 2.61% is within the typical range for the Medical - Healthcare Information Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AMGN vs. GEHC: A comparison of their Payout Ratio against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Dividend at a Glance

SymbolAMGNGEHC
Dividend Yield (TTM)3.10%0.17%
Dividend Payout Ratio (TTM)82.64%2.61%

Valuation

Price-to-Earnings Ratio

AMGN

27.04

Drug Manufacturers - General Industry

Max
27.96
Q3
25.84
Median
18.32
Q1
16.65
Min
3.39

A P/E Ratio of 27.04 places AMGN in the upper quartile for the Drug Manufacturers - General industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

GEHC

15.92

Medical - Healthcare Information Services Industry

Max
114.57
Q3
67.12
Median
45.42
Q1
28.19
Min
6.48

In the lower quartile for the Medical - Healthcare Information Services industry, GEHC’s P/E Ratio of 15.92 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AMGN vs. GEHC: A comparison of their P/E Ratio against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Forward P/E to Growth Ratio

AMGN

7.57

Drug Manufacturers - General Industry

Max
3.10
Q3
3.09
Median
2.72
Q1
2.18
Min
1.02

AMGN’s Forward PEG Ratio of 7.57 is exceptionally high for the Drug Manufacturers - General industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

GEHC

1.22

Medical - Healthcare Information Services Industry

Max
6.35
Q3
2.93
Median
2.00
Q1
0.55
Min
0.03

GEHC’s Forward PEG Ratio of 1.22 is within the middle range of its peers in the Medical - Healthcare Information Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

AMGN vs. GEHC: A comparison of their Forward PEG Ratio against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Price-to-Sales Ratio

AMGN

4.70

Drug Manufacturers - General Industry

Max
6.47
Q3
4.47
Median
3.53
Q1
1.96
Min
0.41

AMGN’s P/S Ratio of 4.70 is in the upper echelon for the Drug Manufacturers - General industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

GEHC

1.76

Medical - Healthcare Information Services Industry

Max
10.90
Q3
5.95
Median
2.46
Q1
1.42
Min
0.36

GEHC’s P/S Ratio of 1.76 aligns with the market consensus for the Medical - Healthcare Information Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AMGN vs. GEHC: A comparison of their P/S Ratio against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Price-to-Book Ratio

AMGN

25.85

Drug Manufacturers - General Industry

Max
7.80
Q3
7.80
Median
5.30
Q1
4.06
Min
1.08

The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.

GEHC

3.78

Medical - Healthcare Information Services Industry

Max
12.91
Q3
6.69
Median
2.84
Q1
1.88
Min
1.03

The P/B Ratio is often not a primary valuation metric for the Medical - Healthcare Information Services industry.

AMGN vs. GEHC: A comparison of their P/B Ratio against their respective Drug Manufacturers - General and Medical - Healthcare Information Services industry benchmarks.

Valuation at a Glance

SymbolAMGNGEHC
Price-to-Earnings Ratio (P/E, TTM)27.0415.92
Forward PEG Ratio (TTM)7.571.22
Price-to-Sales Ratio (P/S, TTM)4.701.76
Price-to-Book Ratio (P/B, TTM)25.853.78
Price-to-Free Cash Flow Ratio (P/FCF, TTM)14.6925.35
EV-to-EBITDA (TTM)16.8811.84
EV-to-Sales (TTM)6.122.10