Amphastar Pharmaceuticals (NASDAQ: AMPH) and Bristol-Myers Squibb (NYSE:BMY) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Volatility & Risk

Amphastar Pharmaceuticals has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Bristol-Myers Squibb has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Dividends

Bristol-Myers Squibb pays an annual dividend of $1.56 per share and has a dividend yield of 2.6%. Amphastar Pharmaceuticals does not pay a dividend. Bristol-Myers Squibb pays out 56.7% of its earnings in the form of a dividend. Bristol-Myers Squibb has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Amphastar Pharmaceuticals and Bristol-Myers Squibb, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amphastar Pharmaceuticals 0 1 5 0 2.83
Bristol-Myers Squibb 1 7 10 0 2.50

Amphastar Pharmaceuticals currently has a consensus target price of $19.83, indicating a potential upside of 26.09%. Bristol-Myers Squibb has a consensus target price of $61.86, indicating a potential upside of 3.42%. Given Amphastar Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts plainly believe Amphastar Pharmaceuticals is more favorable than Bristol-Myers Squibb.

Valuation and Earnings

This table compares Amphastar Pharmaceuticals and Bristol-Myers Squibb’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Amphastar Pharmaceuticals $249.62 million 2.91 $17.41 million $0.08 196.65
Bristol-Myers Squibb $20.24 billion 4.85 $6.01 billion $2.75 21.75

Bristol-Myers Squibb has higher revenue and earnings than Amphastar Pharmaceuticals. Bristol-Myers Squibb is trading at a lower price-to-earnings ratio than Amphastar Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Amphastar Pharmaceuticals and Bristol-Myers Squibb’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amphastar Pharmaceuticals 1.61% 2.42% 1.84%
Bristol-Myers Squibb 22.66% 32.33% 14.86%

Institutional and Insider Ownership

44.5% of Amphastar Pharmaceuticals shares are owned by institutional investors. Comparatively, 68.8% of Bristol-Myers Squibb shares are owned by institutional investors. 11.1% of Amphastar Pharmaceuticals shares are owned by company insiders. Comparatively, 0.2% of Bristol-Myers Squibb shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Bristol-Myers Squibb beats Amphastar Pharmaceuticals on 11 of the 17 factors compared between the two stocks.

Amphastar Pharmaceuticals Company Profile

Amphastar Pharmaceuticals, Inc. is a specialty pharmaceutical company. The Company focuses primarily on developing, manufacturing, marketing and selling generic and injectable, inhalation and intranasal products. The Company has two segments: finished pharmaceutical products and active pharmaceutical ingredients (API) products. The finished pharmaceutical products segment manufactures, markets and distributes enoxaparin, Cortrosyn, Amphadase, naloxone, lidocaine jelly, as well as various other critical and non-critical care drugs. The API segment manufactures and distributes recombinant human insulin and porcine insulin. The Company also manufactures and sells insulin API. As of December 31, 2016, the Company manufactured and sold 19 products. As of December 31, 2016, the Company developed a portfolio of 15 generic abbreviated new drug applications (ANDAs) three generic biosimilar product candidates and six injectable and inhalation product candidates.

Bristol-Myers Squibb Company Profile

Bristol-Myers Squibb Company is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products. The Company’s pharmaceutical products include chemically synthesized drugs, or small molecules, and products produced from biological processes called biologics. Small molecule drugs are administered orally in the form of a pill or tablet. Biologics are administered to patients through injections or by infusion. The Company’s products include Empliciti, Opdivo, Sprycel, Yervoy, Eliquis, Orencia, Baraclude, Hepatitis C Franchise, Reyataz Franchise and Sustiva Franchise. It offers products for a range of therapeutic classes, which include virology, including human immunodeficiency virus (HIV) infection; oncology; immunoscience, and cardiovascular. Its products are sold to wholesalers, retail pharmacies, hospitals, government entities and the medical profession across the world.

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