Opko Health (NASDAQ: OPK) and Amgen (NASDAQ:AMGN) are both mid-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.
This table compares Opko Health and Amgen’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Opko Health and Amgen, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Opko Health currently has a consensus price target of $14.81, suggesting a potential upside of 115.30%. Amgen has a consensus price target of $191.18, suggesting a potential upside of 4.61%. Given Opko Health’s stronger consensus rating and higher probable upside, research analysts clearly believe Opko Health is more favorable than Amgen.
Amgen pays an annual dividend of $4.60 per share and has a dividend yield of 2.5%. Opko Health does not pay a dividend. Amgen pays out 41.9% of its earnings in the form of a dividend. Amgen has increased its dividend for 6 consecutive years.
Institutional & Insider Ownership
22.5% of Opko Health shares are held by institutional investors. Comparatively, 78.1% of Amgen shares are held by institutional investors. 40.2% of Opko Health shares are held by company insiders. Comparatively, 0.2% of Amgen shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Opko Health and Amgen’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Opko Health||$1.18 billion||3.26||-$17.02 million||($0.17)||-40.47|
|Amgen||$23.05 billion||5.79||$12.36 billion||$10.97||16.66|
Amgen has higher revenue and earnings than Opko Health. Opko Health is trading at a lower price-to-earnings ratio than Amgen, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Opko Health has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Amgen has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.
Amgen beats Opko Health on 12 of the 17 factors compared between the two stocks.
Opko Health Company Profile
OPKO Health, Inc. is a healthcare company. Its segments include Pharmaceutical, Diagnostics and Corporate. Pharmaceutical consists of the pharmaceutical operations in Chile, Mexico, Ireland, Israel and Spain and its pharmaceutical research and development operations. Diagnostics consists of the clinical laboratory operations in Bio-Reference Laboratories (Bio-Reference) and its point-of-care operations. Through Bio-Reference, it operates laboratory divisions, such as Bio-Reference, GenPath (Oncology), GenPath (Women’s Health), GeneDx and Laboratorio Bueno Salud. As of December 31, 2016, it had one commercial stage pharmaceutical product and several pharmaceutical compounds and technologies in various stages of research and development for a range of indications and conditions, including Renal Products, Biologics, hGH-CTP, Factor VII, Oxyntomodulin, active pharmaceutical ingredients, Oligonucleotide Therapeutics, NK-1 Program, Asthma and chronic obstructive pulmonary disease.
Amgen Company Profile
Amgen Inc. is a biotechnology company. The Company discovers, develops, manufactures and delivers various human therapeutics. It operates in human therapeutics segment. Its marketed products portfolio includes Neulasta (pegfilgrastim); erythropoiesis-stimulating agents (ESAs), such as Aranesp (darbepoetin alfa) and EPOGEN (epoetin alfa); Sensipar/Mimpara (cinacalcet); XGEVA (denosumab); Prolia (denosumab); NEUPOGEN (filgrastim), and other marketed products, such as KYPROLIS (carfilzomib), Vectibix (panitumumab), Nplate (romiplostim), Repatha (evolocumab), BLINCYTO (blinatumomab), IMLYGIC (talimogene laherparepvec) and Corlanor (ivabradine). It focuses on human therapeutics for the treatment of serious illness in the areas of oncology/hematology, cardiovascular disease and neuroscience. Its product candidates in Phase III include Erenumab for episodic migraine, Aranesp for myelodysplastic syndromes, BLINCYTO for acute lymphoblastic leukemia and IMLYGIC for metastatic melanoma.
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