Financial Analysis: Iovance Biotherapeutics (NASDAQ:IOVA) versus Amgen (NASDAQ:AMGN)

Amgen (NASDAQ:AMGN) and Iovance Biotherapeutics (NASDAQ:IOVA) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Dividends

Amgen pays an annual dividend of $5.80 per share and has a dividend yield of 2.9%. Iovance Biotherapeutics 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.

Insider and Institutional Ownership

79.0% of Amgen shares are owned by institutional investors. Comparatively, 95.7% of Iovance Biotherapeutics shares are owned by institutional investors. 0.3% of Amgen shares are owned by company insiders. Comparatively, 9.3% of Iovance Biotherapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Amgen and Iovance Biotherapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amgen 33.78% 76.17% 14.36%
Iovance Biotherapeutics N/A -38.88% -36.60%

Earnings and Valuation

This table compares Amgen and Iovance Biotherapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amgen $23.75 billion 5.06 $8.39 billion $14.40 13.92
Iovance Biotherapeutics N/A N/A -$123.58 million ($1.27) -16.16

Amgen has higher revenue and earnings than Iovance Biotherapeutics. Iovance Biotherapeutics 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 recommendations and price targets for Amgen and Iovance Biotherapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amgen 0 7 10 0 2.59
Iovance Biotherapeutics 0 0 11 0 3.00

Amgen currently has a consensus price target of $210.31, indicating a potential upside of 4.90%. Iovance Biotherapeutics has a consensus price target of $30.20, indicating a potential upside of 47.17%. Given Iovance Biotherapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Iovance Biotherapeutics is more favorable than Amgen.

Risk & Volatility

Amgen has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Iovance Biotherapeutics has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500.

Summary

Amgen beats Iovance Biotherapeutics on 9 of the 16 factors compared between the two stocks.

About Amgen

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.

About Iovance Biotherapeutics

Iovance Biotherapeutics, Inc., a clinical-stage biotechnology company, focuses on developing and commercializing cancer immunotherapy products to harness the power of a patient's immune system to eradicate cancer cells. The company's lead product candidate is lifileucel, an adoptive cell therapy that is in Phase II clinical trial using tumor-infiltrating lymphocytes (TIL), which are T cells derived from patients' tumors for the treatment of metastatic melanoma. It is also developing LN-145, an autologous adoptive cell therapy to treat cervical and head and neck cancers. The company has research collaboration and clinical grant agreements with Moffitt to evaluate TIL therapy in a clinical trial that combines TIL with nivolumab in NSCLC; strategic alliance agreement with M.D. Anderson Cancer Center to conduct clinical and preclinical research studies; strategic alliance agreement with Roswell Park Cancer Institute to conduct a clinical research study of TIL therapy in bladder cancer; collaboration agreement with MedImmune to conduct clinical and preclinical research in immuno-oncology; preclinical research collaboration with the Ohio State University; and a preclinical research collaboration with Cellectis S.A. to investigate transcription activator-like effector nucleases. The company was formerly known as Lion Biotechnologies, Inc. and changed its name to Iovance Biotherapeutics, Inc. in June 2017. Iovance Biotherapeutics, Inc. was founded in 2007 and is headquartered in San Carlos, California.

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