Is Amgen Stock Worth More Than Its Competitors

Amgen (AMGN) competes in a tight peer group of six large drugmakers alongside AbbVie, Johnson & Johnson, Merck, Pfizer, and Bristol-Myers Squibb. The company ranks second within this group for both sales growth and operating margin. Its valuation tells a different story. Leaving out Merck and Pfizer, which each reported a loss in at least one of their last four quarters, Amgen has the third highest P/E of the four companies that can be compared. So how far apart are what Amgen delivers and what you pay for it?

Amgen Is Priced Below A Slower-Growing Rival

Johnson & Johnson provides the clearest point of comparison. Amgen grew its revenue by 9.1% over the past twelve months, beating the 8.1% rate at Johnson & Johnson. Amgen also retained a larger share of its sales as operating profit, posting a margin of 30.0% against Johnson & Johnson's 26.8%. Yet investors pay just 25.8 times earnings for Amgen, compared to 30.2 times for Johnson & Johnson.

AbbVie is the sole peer to beat Amgen on both growth and margin. That performance comes at a steep premium, with AbbVie trading at 78.8 times earnings. Bristol-Myers Squibb offers the lowest valuation at 12.7 times, but its revenue grew by a modest 3.1%. Merck and Pfizer fall out of the price ranking entirely. Both of those companies reported a loss in at least one of their last four quarters.

Amgen Gains On Repatha, Loses On Prolia And XGEVA

Executives point to six key growth drivers for Amgen. The company reported on its fiscal Q2 2026 call, held August 4, 2026, that these six grew 26% from a year earlier. Together they accounted for nearly 70% of product sales in that quarter. Repatha, which lowers LDL cholesterol, saw its sales rise 37% in the quarter.

Two other drugs are pulling the overall numbers in the opposite direction. Combined sales of Prolia and XGEVA fell 33% in the same quarter. Management noted that biosimilar competitors, rival copies of the two drugs, have now launched.

Overall growth at Amgen has slowed. Revenue growth hit 16.4% two years ago and 12.9% a year ago, before slowing again over the latest twelve months. The market price appears to assume this slowdown continues.

How Much Revenue Is Amgen Aiming For?

Amgen expects 2026 revenue of $38.2 billion to $39.4 billion, according to statements management made on that August call. That guidance represents a raise. The new midpoint sits at $38.8 billion, up from $37.8 billion in an earlier forecast. Set against the $36.8 billion Amgen reported for 2025, this midpoint works out to growth of about 5%. That figure remains a forecast and not a final result.

The risk for shareholders lies in the margin. Management warned in August that it expected third-quarter operating expenses to rise meaningfully from the second, as the company spent more on its pipeline and commercial brands. Results for that quarter are still pending. Operating margin remains one of the two measures on which Amgen ranks second, and higher expenses could lower it.

Amgen remains priced below a rival it currently outgrows, and the stock price appears to assume its growth keeps slowing. The six growth drivers are expanding so far, but Prolia and XGEVA are still losing sales to copies. Amgen's full-year 2026 revenue, measured against the range it gave in August, is the number to watch when the company reports the year.

Does This Mean You Should Act On AMGN?

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