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Better Buy: Amgen, Inc or Regeneron Pharmaceuticals Inc?

AMGN PE Ratio (TTM) Chart
AMGN PE Ratio (TTM) Chart

Regeneron is trading for about 125 times earnings, suggesting investors are expecting monstrous growth for the company. Amgen, by comparison, is trading for less than 20 times.

So which is the better buy?

Although I think the growth from PCSK9 inhibitors will be much greater on a percentage basis for Regeneron, when forced to choose between these two companies, I think Amgen's value price tag makes it the better buy today. In addition, while retaining 100% of the upside of Repatha, Amgen also offers investors a slew of other blockbusters drugs that are churning out cash, a big buyback program, and a 1.9% dividend yield that is well protected .

The bigger company's growth rate may be slower, and dealing with patent expirations will certainly be a challenge, but given everything we know, I think Amgen is the better choice today.

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The article Better Buy: Amgen, Inc or Regeneron Pharmaceuticals Inc? originally appeared on Fool.com.

Brian Feroldi has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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