AMGN vs. MCK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AMGN and MCK, 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 MCK’s 89.99 billion USD, indicating a significant difference in their market valuations.
With betas of 0.50 for AMGN and 0.49 for MCK, both stocks show similar sensitivity to overall market movements.
| Symbol | AMGN | MCK |
|---|---|---|
| Company Name | Amgen Inc. | McKesson Corporation |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Drug Manufacturers - General | Medical - Distribution |
| CEO | Robert A. Bradway | Brian S. Tyler |
| Price | 298.24 USD | 719.3 USD |
| Market Cap | 160.37 billion USD | 89.99 billion USD |
| Beta | 0.50 | 0.49 |
| Exchange | NASDAQ | NYSE |
| IPO Date | June 17, 1983 | November 10, 1994 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AMGN and MCK 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.
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.
MCK
-132.73%
Medical - Distribution Industry
- Max
- 12.20%
- Q3
- 12.03%
- Median
- -50.14%
- Q1
- -62.68%
- Min
- -132.73%
MCK has a negative Return on Equity of -132.73%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
MCK
26.59%
Medical - Distribution Industry
- Max
- 26.59%
- Q3
- 11.51%
- Median
- 7.70%
- Q1
- -0.02%
- Min
- -5.86%
In the upper quartile for the Medical - Distribution industry, MCK’s Return on Invested Capital of 26.59% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
MCK
0.92%
Medical - Distribution Industry
- Max
- 3.21%
- Q3
- 2.07%
- Median
- 0.70%
- Q1
- -1.43%
- Min
- -6.29%
MCK’s Net Profit Margin of 0.92% is aligned with the median group of its peers in the Medical - Distribution industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
MCK
1.24%
Medical - Distribution Industry
- Max
- 5.22%
- Q3
- 3.23%
- Median
- 1.07%
- Q1
- -0.39%
- Min
- -4.51%
MCK’s Operating Profit Margin of 1.24% is around the midpoint for the Medical - Distribution industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AMGN | MCK |
|---|---|---|
| Return on Equity (TTM) | 92.94% | -132.73% |
| Return on Assets (TTM) | 6.64% | 4.39% |
| Return on Invested Capital (TTM) | 9.53% | 26.59% |
| Net Profit Margin (TTM) | 17.39% | 0.92% |
| Operating Profit Margin (TTM) | 21.82% | 1.24% |
| Gross Profit Margin (TTM) | 63.00% | 3.66% |
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.
MCK
0.90
Medical - Distribution Industry
- Max
- 1.38
- Q3
- 1.26
- Median
- 1.13
- Q1
- 0.92
- Min
- 0.87
MCK’s Current Ratio of 0.90 falls into the lower quartile for the Medical - Distribution industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
MCK
-3.56
Medical - Distribution Industry
- Max
- 0.97
- Q3
- 0.97
- Median
- 0.65
- Q1
- 0.04
- Min
- 0.03
MCK has a Debt-to-Equity Ratio of -3.56, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
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.
MCK
25.45
Medical - Distribution Industry
- Max
- 25.45
- Q3
- 12.43
- Median
- 7.07
- Q1
- 1.82
- Min
- -1.21
MCK’s Interest Coverage Ratio of 25.45 is in the upper quartile for the Medical - Distribution industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AMGN | MCK |
|---|---|---|
| Current Ratio (TTM) | 1.17 | 0.90 |
| Quick Ratio (TTM) | 0.88 | 0.53 |
| Debt-to-Equity Ratio (TTM) | 9.24 | -3.56 |
| Debt-to-Asset Ratio (TTM) | 0.64 | 0.10 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.92 | 0.33 |
| Interest Coverage Ratio (TTM) | 3.19 | 25.45 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AMGN and MCK. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
MCK
0.39%
Medical - Distribution Industry
- Max
- 1.21%
- Q3
- 0.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MCK’s Dividend Yield of 0.39% is consistent with its peers in the Medical - Distribution industry, providing a dividend return that is standard for its sector.
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.
MCK
10.47%
Medical - Distribution Industry
- Max
- 31.84%
- Q3
- 21.47%
- Median
- 5.24%
- Q1
- 0.00%
- Min
- 0.00%
MCK’s Dividend Payout Ratio of 10.47% is within the typical range for the Medical - Distribution industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AMGN | MCK |
|---|---|---|
| Dividend Yield (TTM) | 3.10% | 0.39% |
| Dividend Payout Ratio (TTM) | 82.64% | 10.47% |
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.
MCK
27.33
Medical - Distribution Industry
- Max
- 34.27
- Q3
- 27.58
- Median
- 25.75
- Q1
- 22.28
- Min
- 18.73
MCK’s P/E Ratio of 27.33 is within the middle range for the Medical - Distribution industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
MCK
2.11
Medical - Distribution Industry
- Max
- 3.40
- Q3
- 2.79
- Median
- 2.36
- Q1
- 2.08
- Min
- 1.94
MCK’s Forward PEG Ratio of 2.11 is within the middle range of its peers in the Medical - Distribution industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
MCK
0.25
Medical - Distribution Industry
- Max
- 1.08
- Q3
- 0.89
- Median
- 0.25
- Q1
- 0.18
- Min
- 0.06
MCK’s P/S Ratio of 0.25 aligns with the market consensus for the Medical - Distribution industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
MCK
-43.42
Medical - Distribution Industry
- Max
- 8.13
- Q3
- 8.13
- Median
- 2.74
- Q1
- 2.19
- Min
- 1.20
MCK has a negative P/B Ratio of -43.42, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.
Valuation at a Glance
| Symbol | AMGN | MCK |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 27.04 | 27.33 |
| Forward PEG Ratio (TTM) | 7.57 | 2.11 |
| Price-to-Sales Ratio (P/S, TTM) | 4.70 | 0.25 |
| Price-to-Book Ratio (P/B, TTM) | 25.85 | -43.42 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 14.69 | 16.04 |
| EV-to-EBITDA (TTM) | 16.88 | 17.87 |
| EV-to-Sales (TTM) | 6.12 | 0.26 |