Analyzing Amgen (NASDAQ:AMGN) and AnaptysBio (NASDAQ:ANAB)

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

Earnings & Valuation

This table compares AnaptysBio and Amgen”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AnaptysBio	$234.60 million	7.41	-$13.23 million	($1.08)	-55.29
Amgen	$37.22 billion	4.92	$7.71 billion	$14.37	23.61

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

Volatility & Risk

AnaptysBio has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Amgen has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AnaptysBio	-11.53%	-1,101.24%	-7.75%
Amgen	20.96%	137.41%	13.28%

Analyst Ratings

This is a breakdown of current recommendations and price targets for AnaptysBio and Amgen, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AnaptysBio	1	1	10	1	2.85
Amgen	2	14	13	2	2.48

AnaptysBio currently has a consensus target price of $79.18, indicating a potential upside of 32.61%. Amgen has a consensus target price of $355.19, indicating a potential upside of 4.68%. Given AnaptysBio’s stronger consensus rating and higher possible upside, research analysts plainly believe AnaptysBio is more favorable than Amgen.

Institutional and Insider Ownership

76.5% of Amgen shares are held by institutional investors. 33.5% of AnaptysBio shares are held by company insiders. Comparatively, 0.9% of Amgen shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Amgen beats AnaptysBio on 10 of the 15 factors compared between the two stocks.

About AnaptysBio

AnaptysBio, Inc., a clinical-stage biotechnology company, focuses in delivering immunology therapeutics. Its products include Rosnilimab, an IgG1 antibody that targets PD-1+ T cells, resulting in their agonism or depletion, broadly impacting pathogenic drivers of autoimmune and inflammatory diseases; and ANB032, a non-depleting antibody that binds to the BTLA checkpoint receptor and inhibits activated T cell proliferation; ANB033, a novel anti-CD122 antagonist antibody that targets the shared common beta subunit of the receptors for IL-15 and IL-2; ANB101, a BDCA2 modulator antibody that specifically targets plasmacytoid dendritic cells (pDCs); and Imsidolimab, an antibody that inhibits the interleukin-36 receptor, which is in the Phase 3 development for the treatment of generalized pustular psoriasis. The company also focuses on developing various antibody programs that are advanced to preclinical and clinical milestones under its collaborations. It has a collaboration and license agreement with GlaxoSmithKline, Inc. The company was formerly known as Anaptys Biosciences, Inc. and changed its name to AnaptysBio, Inc. in July 2006. AnaptysBio, Inc. was incorporated in 2005 and is based in San Diego, California.

About Amgen

Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. The company's principal products include Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease; Prolia to treat postmenopausal women with osteoporosis; XGEVA for skeletal-related events prevention; Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization; Nplate for the treatment of patients with immune thrombocytopenia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; Aranesp to treat a lower-than-normal number of red blood cells and anemia; EVENITY for the treatment of osteoporosis in postmenopausal for men and women; Vectibix to treat patients with wild-type RAS metastatic colorectal cancer; BLINCYTO for the treatment of patients with acute lymphoblastic leukemia; TEPEZZA to treat thyroid eye disease; and KRYSTEXXA for the treatment of chronic refractory gout. It also markets other products, including Neulasta, MVASI, AMJEVITA/AMGEVITA, TEZSPIRE, Parsabiv, Aimovig, LUMAKRAS/LUMYKRAS, EPOGEN, KANJINTI, TAVNEOS, RAVICTI, UPLIZNA and PROCYSBI. The company 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 collaboration agreements with AstraZeneca plc for the development and commercialization of TEZSPIRE; Novartis Pharma AG to develop and commercialize Aimovig; UCB for the development and commercialization of EVENITY; Kyowa Kirin Co., Ltd. for rocatinlimab development and commercialization; and BeiGene, Ltd. for oncology products expansion and development. Amgen Inc. was incorporated in 1980 and is headquartered in Thousand Oaks, California.