Financial Contrast: Amgen (AMGN) vs. Eiger Biopharmaceuticals (EIGR)

Amgen (NASDAQ:AMGN) and Eiger Biopharmaceuticals (NASDAQ:EIGR) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Amgen and Eiger Biopharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amgen 0 9 8 0 2.47
Eiger Biopharmaceuticals 0 0 7 0 3.00

Amgen currently has a consensus price target of $207.76, suggesting a potential upside of 8.66%. Eiger Biopharmaceuticals has a consensus price target of $34.14, suggesting a potential upside of 147.59%. Given Eiger Biopharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Eiger Biopharmaceuticals is more favorable than Amgen.

Dividends

Amgen pays an annual dividend of $5.80 per share and has a dividend yield of 3.0%. Eiger Biopharmaceuticals does not pay a dividend. Amgen pays out 40.3% of its earnings in the form of a dividend. Amgen has increased its dividend for 8 consecutive years.

Profitability

This table compares Amgen and Eiger Biopharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amgen 35.35% 66.74% 14.05%
Eiger Biopharmaceuticals N/A -127.50% -75.01%

Insider and Institutional Ownership

79.2% of Amgen shares are held by institutional investors. Comparatively, 81.0% of Eiger Biopharmaceuticals shares are held by institutional investors. 0.3% of Amgen shares are held by insiders. Comparatively, 7.9% of Eiger Biopharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Amgen has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Eiger Biopharmaceuticals has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Valuation and Earnings

This table compares Amgen and Eiger Biopharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amgen $23.75 billion 4.96 $8.39 billion $14.40 13.28
Eiger Biopharmaceuticals N/A N/A -$52.39 million ($3.82) -3.61

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

Summary

Amgen beats Eiger Biopharmaceuticals on 9 of the 15 factors compared between the two stocks.

Amgen Company Profile

Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. It offers products for the treatment of oncology/hematology, cardiovascular, inflammation, bone health, and neuroscience. The company's products include Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Neulasta, a pegylated protein to treat cancer patients; Prolia to treat postmenopausal women with osteoporosis; Aranesp to treat anemia; Xgeva for skeletal-related events prevention; Sensipar/Mimpara products to treat sHPT in chronic kidney disease; and EPOGEN to treat a lower-than-normal number of red blood cells. It also markets other products in various markets, including Kyprolis, Nplate, Vectibix, Repatha, NEUPOGEN, Parsabiv, Blincyto, Aimovig, Imlygic, Corlanor, Kanjintitm, and Amgevitatm. Amgen Inc. serves healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies. It distributes its products through pharmaceutical wholesale distributors, as well as direct-to-consumer channels. The company has collaborative agreements with Novartis; UCB; Bayer HealthCare Pharmaceuticals Inc.; and DaVita Inc. Amgen Inc. was founded in 1980 and is headquartered in Thousand Oaks, California.

Eiger Biopharmaceuticals Company Profile

Eiger BioPharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of targeted therapies for rare diseases in the United States and internationally. The company's lead program is Lonafarnib, an orally bioavailable, small molecule, which is in Phase III clinical trial for treating hepatitis delta virus (HDV) infection. Its product candidates that are in Phase II clinical trial include Lambda, which targets type III IFN receptors; Exendin 9-39 for treating post-bariatric hypoglycemia; and Ubenimex, an oral, small-molecule inhibitor of leukotriene A4 hydrolase for treating lymphedema. The company was founded in 2008 and is headquartered in Palo Alto, California.

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