Financial Survey: Amgen (AMGN) versus Nightstar Therapeutics (NITE)

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Amgen (NASDAQ: AMGN) and Nightstar Therapeutics (NASDAQ:NITE) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Dividends

Amgen pays an annual dividend of $5.28 per share and has a dividend yield of 2.8%. Nightstar Therapeutics does not pay a dividend. Amgen pays out 42.0% of its earnings in the form of a dividend. Amgen has increased its dividend for 7 consecutive years.

Profitability

This table compares Amgen and Nightstar Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amgen 9.67% 35.80% 12.06%
Nightstar Therapeutics N/A N/A N/A

Earnings & Valuation

This table compares Amgen and Nightstar Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amgen $22.85 billion 5.39 $1.98 billion $12.58 14.78
Nightstar Therapeutics N/A N/A -$29.68 million ($1.63) -9.36

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Amgen and Nightstar Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amgen 0 11 10 0 2.48
Nightstar Therapeutics 0 0 6 0 3.00

Amgen currently has a consensus target price of $193.67, indicating a potential upside of 4.14%. Nightstar Therapeutics has a consensus target price of $28.50, indicating a potential upside of 86.89%. Given Nightstar Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Nightstar Therapeutics is more favorable than Amgen.

Insider & Institutional Ownership

78.3% of Amgen shares are owned by institutional investors. Comparatively, 29.7% of Nightstar Therapeutics shares are owned by institutional investors. 0.2% of Amgen shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Amgen beats Nightstar Therapeutics on 12 of the 15 factors compared between the two stocks.

About Amgen

Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. It offers products for the treatment of oncology/hematology, cardiovascular, inflammation, bone health, nephrology, and neuroscience. The company's products include Evenity to treat osteoporosis in postmenopausal women; Prolia to treat postmenopausal women with osteoporosis; Xgeva for skeletal-related events prevention; Repatha to treat coronary diseases; Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Parsabiv to treat secondary hyperparathyroidism (sHPT); and Aimovig for the prevention of migraine. Its products also comprise Blincyto to treat patients with Philadelphia chromosome-negative relapsed or refractory B-cell precursor acute lymphoblastic leukemia; Kyprolis, a proteasome inhibitor for the treatment of multiple myeloma and small-cell lung cancer; Nplate, a thrombopoietic compound. The company's marketed products include Neulasta, a pegylated protein to treat cancer patients; Aranesp to treat anemia; Sensipar/Mimpara products to treat sHPT in chronic kidney disease; EPOGEN to treat a lower-than-normal number of red blood cells; NEUPOGEN, a recombinant human granulocyte colony-stimulating factor; and IMLYGIC to treat various cancer cells. It serves pharmaceutical wholesale distributors; and physicians or their clinics, dialysis centers, hospitals, and pharmacies, as well as consumers. The company has collaborative agreements with Pfizer Inc.; UCB; Bayer HealthCare Pharmaceuticals Inc. Amgen Inc. was founded in 1980 and is headquartered in Thousand Oaks, California.

About Nightstar Therapeutics

Nightstar Therapeutics plc, a clinical-stage gene therapy company, focuses on developing and commercializing novel one-time treatments for patients suffering from rare inherited retinal diseases in the United Kingdom. The company's lead product candidate includes NSR-REP1, a candidate that has completed Phase 1/2 clinical trial for the treatment of patients with choroideremia. It is also developing NSR-RPGR, a candidate that is in Phase 1/2 clinical trial for the treatment of patients with X-linked retinitis pigmentosa, an inherited X-linked recessive retinal disease; and NSR-BEST1, a candidate that is in preclinical development stage for the treatment of best vitelliform macular dystrophy. The company was founded in 2013 and is headquartered in London, the United Kingdom.

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