Amgen (NASDAQ:AMGN – Get Free Report) and Beam Therapeutics (NASDAQ:BEAM – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.
Profitability
This table compares Amgen and Beam Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amgen | 13.00% | 168.35% | 11.18% |
| Beam Therapeutics | -41.07% | -16.22% | -10.94% |
Volatility & Risk
Amgen has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Beam Therapeutics has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amgen | 2 | 12 | 12 | 1 | 2.44 |
| Beam Therapeutics | 0 | 2 | 8 | 2 | 3.00 |
Amgen presently has a consensus target price of $314.00, indicating a potential upside of 2.01%. Beam Therapeutics has a consensus target price of $47.67, indicating a potential upside of 71.34%. Given Beam Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Beam Therapeutics is more favorable than Amgen.
Institutional & Insider Ownership
76.5% of Amgen shares are owned by institutional investors. Comparatively, 99.7% of Beam Therapeutics shares are owned by institutional investors. 0.7% of Amgen shares are owned by insiders. Comparatively, 4.2% of Beam Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Amgen and Beam Therapeutics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amgen | $28.19 billion | 5.87 | $6.72 billion | $7.81 | 39.41 |
| Beam Therapeutics | $377.71 million | 6.10 | -$132.53 million | ($1.76) | -15.81 |
Amgen has higher revenue and earnings than Beam Therapeutics. Beam Therapeutics is trading at a lower price-to-earnings ratio than Amgen, indicating that it is currently the more affordable of the two stocks.
Summary
Amgen beats Beam Therapeutics on 8 of the 15 factors compared between the two stocks.
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.
About Beam Therapeutics
Beam Therapeutics Inc., a biotechnology company, engages in the development of precision genetic medicines for patients suffering from serious diseases in the United States. It develops BEAM-101 for the treatment of sickle cell disease or beta-thalassemia; and BEAM-302, a liver-targeting LNP formulation to treat severe alpha-1 antitrypsin deficiency; BEAM-201, an anti-CD7 CAR-T product candidate, which is in Phase 1/2 clinical trials for the treatment of refractory T-cell acute lymphoblastic leukemia/T cell lymphoblastic lymphoma; and BEAM-301, a liver-targeting LNP formulation for the treatment of glycogen storage disease 1a. The company has research collaboration agreement with Pfizer Inc., focus on in vivo base editing programs for targets rare genetic diseases of the liver, muscle, and central nervous system; Apellis Pharmaceuticals to conduct preclinical research on target specific genes within the complement system in various organs, including the eye, liver, and brain; Verve Therapeutics, Inc., for cardiovascular disease treatments; Sana Biotechnology, Inc., to research, develop, and commercialize rights to CRISPR Cas12b for cell therapy programs; and Orbital Therapeutics design RNA for the prevention, treatment or diagnosis of human disease. Beam Therapeutics Inc. was incorporated in 2017 and is based in Cambridge, Massachusetts.
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