The better pick
AbbVie (ABBV) and Amgen (AMGN) are down 15.82% and 13.17%, respectively, in 2019 on a YTD (year-to-date) basis.
Despite their dismal performances so far in 2019, there are certain things about both companies that could prove to be attractive for investors. To evaluate which of the two companies is a better pick in the long run, let’s take a look at the various pros and cons of both.
Analysts’ recommendations and target prices
The consensus recommendation for AbbVie is a “hold,” while the consensus recommendation for Amgen is a “buy.”
Wall Street analysts expect an upside of 16.05% for AbbVie based on the company’s closing price on May 30. Analysts have gradually reduced the company’s 12-month consensus target price from $92.18 in February and March to $91.00 in April and $90.07 in May.
Of the 17 analysts covering AbbVie, one has given it a “strong buy,” three have given it “buys,” 11 have given it “holds,” one has given it a “sell,” and one has given it a “strong sell.”
Wall Street analysts expect an upside of 21.33% for Amgen based on the company’s closing price on May 30. Analysts first increased the company’s 12-month consensus target price from $205.80 in February to $206.86 in March and $206.90 in April but then reduced it to $205.00 in May.
Of the 25 analysts covering Amgen, six have given it “strong buys,” seven have given it “buys,” and 12 have given it “holds.”
Share price movements and valuations
On May 30, AbbVie closed at $77.61, 0.58% lower than its previous day’s close, 2.63% higher than its 52-week low of $75.62, and 24.77% lower than its 52-week high of $103.16. The company’s market cap was $116.30 billion, and its PE, forward PE, PEG (PE-to-growth), PS (price-to-sales), and PC (price-to-cash) ratios were 21.95x, 8.24x, 2.85x, 3.56x, and 22.24x, respectively.
On May 30, Amgen closed at $169.04, 0.08% lower than its previous day’s close, 1.65% higher than its 52-week low of $166.30, and 19.58% lower than its 52-week high of $210.19. The company’s market cap was $103.60 billion, and its PE, forward PE, PEG, PS, and PC ratios were 13.49x, 11.48x, 6.74x, 4.36x, and 3.94x, respectively.
Compared to AbbVie, Amgen is trading at lower PE and PC ratios but at higher forward PE, PEG, and PS ratios.