Head to Head Comparison: Horizon Pharma (HZNP) and Amgen (AMGN)

Horizon Pharma (NASDAQ: HZNP) and Amgen (NASDAQ:AMGN) are both mid-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.

Risk & Volatility

Horizon Pharma has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Amgen has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Profitability

This table compares Horizon Pharma and Amgen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Horizon Pharma -45.28% 20.22% 5.35%
Amgen 35.54% 29.90% 11.80%

Valuation & Earnings

This table compares Horizon Pharma and Amgen’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Horizon Pharma $981.12 million 2.54 -$166.83 million ($3.04) -5.00
Amgen $22.99 billion 5.92 $7.72 billion $11.07 16.95

Amgen has higher revenue and earnings than Horizon Pharma. Horizon Pharma is trading at a lower price-to-earnings ratio than Amgen, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Horizon Pharma and Amgen, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Horizon Pharma 0 1 10 0 2.91
Amgen 0 11 9 0 2.45

Horizon Pharma presently has a consensus price target of $19.18, suggesting a potential upside of 26.11%. Amgen has a consensus price target of $190.56, suggesting a potential upside of 1.58%. Given Horizon Pharma’s stronger consensus rating and higher probable upside, analysts plainly believe Horizon Pharma is more favorable than Amgen.

Dividends

Amgen pays an annual dividend of $4.60 per share and has a dividend yield of 2.5%. Horizon Pharma does not pay a dividend. Amgen pays out 41.6% of its earnings in the form of a dividend. Amgen has increased its dividend for 7 consecutive years.

Insider & Institutional Ownership

86.6% of Horizon Pharma shares are held by institutional investors. Comparatively, 78.5% of Amgen shares are held by institutional investors. 3.2% of Horizon Pharma shares are held by insiders. Comparatively, 0.2% of Amgen shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Amgen beats Horizon Pharma on 11 of the 17 factors compared between the two stocks.

Horizon Pharma Company Profile

Horizon Pharma Public Limited Company is a biopharmaceutical company. The Company is focused on identifying, developing, acquiring and commercializing differentiated and accessible medicines that address unmet medical needs. As of December 31, 2016, the Company marketed 11 medicines through its orphan, rheumatology and primary care business units. The Company’s marketed medicines are ACTIMMUNE (interferon gamma-1b), BUPHENYL (sodium phenylbutyrate) Tablets and Powder, DUEXIS (ibuprofen/famotidine), KRYSTEXXA (pegloticase), MIGERGOT (ergotamine tartrate & caffeine suppositories), PENNSAID (diclofenac sodium topical solution) 2% weight per weight (w/w), or PENNSAID 2%, PROCYSBI (cysteamine bitartrate) delayed-release capsules, QUINSAIR (aerosolized form of levofloxacin), RAVICTI (glycerol phenylbutyrate) Oral Liquid, RAYOS (prednisone) delayed-release tablets and VIMOVO (naproxen/esomeprazole magnesium).

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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