Amgen Inc (AMGN)vsVertex Pharmaceuticals Inc (VRTX)
AMGN
Amgen Inc
$353.93
+1.58%
HEALTHCARE · Cap: $187.83B
VRTX
Vertex Pharmaceuticals Inc
$454.97
+1.42%
HEALTHCARE · Cap: $113.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Amgen Inc generates 206% more annual revenue ($36.75B vs $12.00B). VRTX leads profitability with a 32.9% profit margin vs 21.0%. VRTX appears more attractively valued with a PEG of 2.19. AMGN earns a higher WallStSmart Score of 70/100 (B-).
AMGN
Strong Buy70
out of 100
Grade: B-
VRTX
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+46.8%
Fair Value
$665.50
Current Price
$353.93
$311.57 discount
Margin of Safety
+36.5%
Fair Value
$716.04
Current Price
$454.97
$261.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 106 in profit
Strong operational efficiency at 30.5%
Earnings expanding 112.1% YoY
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 39.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 22.0x book value
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AMGN
The strongest argument for AMGN centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 21.0% and operating margin at 30.5%.
Bull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.
Bear Case : AMGN
The primary concerns for AMGN are PEG Ratio, Price/Book.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
AMGN carries more volatility with a beta of 0.42 — expect wider price swings.
VRTX is growing revenue faster at 9.5% — sustainability is the question.
AMGN generates stronger free cash flow (961M), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AMGN scores higher overall (70/100 vs 66/100), backed by strong 21.0% margins. VRTX offers better value entry with a 36.5% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Amgen Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Amgen Inc. (formerly Applied Molecular Genetics Inc.) is an American multinational biopharmaceutical company headquartered in Thousand Oaks, California. Focused on molecular biology and biochemistry, its goal is to provide a healthcare business based on recombinant DNA technology.
Visit Website →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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