Amgen (NASDAQ:AMGN) vs. Tectonic Therapeutic (NASDAQ:TECX) Critical Review

Amgen (NASDAQ:AMGNGet Free Report) and Tectonic Therapeutic (NASDAQ:TECXGet Free Report) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Amgen 13.00% 168.35% 11.18%
Tectonic Therapeutic N/A -35.53% -31.97%

Valuation and Earnings

This table compares Amgen and Tectonic Therapeutic”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amgen $28.19 billion 5.34 $6.72 billion $7.81 35.86
Tectonic Therapeutic N/A N/A $12.16 million ($5.89) -8.35

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

Insider & Institutional Ownership

76.5% of Amgen shares are owned by institutional investors. Comparatively, 62.6% of Tectonic Therapeutic shares are owned by institutional investors. 0.7% of Amgen shares are owned by company insiders. Comparatively, 9.2% of Tectonic Therapeutic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Amgen and Tectonic Therapeutic, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amgen 1 13 11 1 2.46
Tectonic Therapeutic 0 0 5 1 3.17

Amgen presently has a consensus target price of $323.05, indicating a potential upside of 15.34%. Tectonic Therapeutic has a consensus target price of $72.25, indicating a potential upside of 46.97%. Given Tectonic Therapeutic’s stronger consensus rating and higher probable upside, analysts plainly believe Tectonic Therapeutic is more favorable than Amgen.

Risk and Volatility

Amgen has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Tectonic Therapeutic has a beta of 2.6, indicating that its share price is 160% more volatile than the S&P 500.

Summary

Amgen beats Tectonic Therapeutic on 9 of the 13 factors compared between the two stocks.

About Amgen

(Get Free Report)

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.

About Tectonic Therapeutic

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Avrobio, Inc. is a bio-technology company. It develops step-change cell and gene therapies for the treatment of cancer and rare disease. The company operates primarily in the United States and Canada. Avrobio, Inc. is based in MA, United States.

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