AMAG Pharmaceuticals (NASDAQ: AMAG) and Bristol-Myers Squibb (NYSE:BMY) are both pharmaceuticals – nec companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.

Dividends

Bristol-Myers Squibb pays an annual dividend of $1.56 per share and has a dividend yield of 2.6%. AMAG Pharmaceuticals does not pay a dividend. Bristol-Myers Squibb pays out 61.4% of its earnings in the form of a dividend. AMAG Pharmaceuticals has raised its dividend for 7 consecutive years.

Profitability

This table compares AMAG Pharmaceuticals and Bristol-Myers Squibb’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AMAG Pharmaceuticals -35.35% -0.64% -0.25%
Bristol-Myers Squibb 20.56% 32.41% 14.66%

Insider & Institutional Ownership

69.5% of Bristol-Myers Squibb shares are held by institutional investors. 3.8% of AMAG Pharmaceuticals shares are held by company insiders. Comparatively, 0.2% of Bristol-Myers Squibb shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares AMAG Pharmaceuticals and Bristol-Myers Squibb’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
AMAG Pharmaceuticals $532.09 million 0.96 -$2.48 million ($6.08) -2.38
Bristol-Myers Squibb $19.43 billion 5.14 $4.46 billion $2.54 24.01

Bristol-Myers Squibb has higher revenue and earnings than AMAG Pharmaceuticals. AMAG Pharmaceuticals is trading at a lower price-to-earnings ratio than Bristol-Myers Squibb, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for AMAG Pharmaceuticals and Bristol-Myers Squibb, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMAG Pharmaceuticals 1 10 3 0 2.14
Bristol-Myers Squibb 1 8 9 0 2.44

AMAG Pharmaceuticals currently has a consensus price target of $24.27, indicating a potential upside of 67.98%. Bristol-Myers Squibb has a consensus price target of $63.92, indicating a potential upside of 4.81%. Given AMAG Pharmaceuticals’ higher possible upside, equities research analysts clearly believe AMAG Pharmaceuticals is more favorable than Bristol-Myers Squibb.

Volatility and Risk

AMAG Pharmaceuticals has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Bristol-Myers Squibb has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Summary

Bristol-Myers Squibb beats AMAG Pharmaceuticals on 12 of the 16 factors compared between the two stocks.

AMAG Pharmaceuticals Company Profile

AMAG Pharmaceuticals, Inc. is a pharmaceutical company. The Company’s segment is the manufacture, development and commercialization of products and services for use in treating various conditions, with a focus on maternal health, anemia management and cancer supportive care. Its offerings focus on maternal health, anemia management and cancer supportive care, including its product, Makena (hydroxyprogesterone caproate injection); services related to the collection, processing and storage of umbilical cord blood stem cell and cord tissue units operated through Cord Blood Registry (CBR); its product, Feraheme (ferumoxytol), for intravenous (IV) use, and MuGard Mucoadhesive Oral Wound Rinse. It is engaged in the development of Digoxin immune fab, a polyclonal antibody for the treatment of severe preeclampsia in pregnant women. Makena is a drug indicated to reduce the risk of preterm birth in women pregnant with a single baby having a history of singleton spontaneous preterm birth.

Bristol-Myers Squibb Company Profile

Bristol-Myers Squibb Company is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products. The Company’s pharmaceutical products include chemically synthesized drugs, or small molecules, and products produced from biological processes called biologics. Small molecule drugs are administered orally in the form of a pill or tablet. Biologics are administered to patients through injections or by infusion. The Company’s products include Empliciti, Opdivo, Sprycel, Yervoy, Eliquis, Orencia, Baraclude, Hepatitis C Franchise, Reyataz Franchise and Sustiva Franchise. It offers products for a range of therapeutic classes, which include virology, including human immunodeficiency virus (HIV) infection; oncology; immunoscience, and cardiovascular. Its products are sold to wholesalers, retail pharmacies, hospitals, government entities and the medical profession across the world.

Receive News & Ratings for AMAG Pharmaceuticals Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AMAG Pharmaceuticals Inc. and related companies with MarketBeat.com's FREE daily email newsletter.