Compare Amgen Inc. (AMGN) vs Eli Lilly and Company (LLY) Stock

Amgen Inc. (AMGN) offers the better valuation at 27.3x trailing P/E (17.3x forward), making it the more compelling value choice. Analysts rate Amgen Inc. (AMGN) a "Buy" — based on 37 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Amgen Inc. (AMGN) is the cheapest at 27.3x versus Eli Lilly and Company at 89.9x. On forward P/E, Amgen Inc. is actually cheaper at 17.3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Eli Lilly and Company wins at 5.02x versus Amgen Inc.'s 5.89x.

Over the past 5 years, Eli Lilly and Company (LLY) delivered a total return of +421.2%, compared to +89.7% for Amgen Inc. (AMGN). A $10,000 investment in LLY five years ago would be worth approximately $52K today (assuming dividends reinvested). Over 10 years, the gap is even starker: LLY returned +1412% versus AMGN's +221.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Amgen Inc. (AMGN) is the lower-risk stock at 0.45β versus Eli Lilly and Company's 0.65β — meaning LLY is approximately 44% more volatile than AMGN relative to the S&P 500. On balance sheet safety, Eli Lilly and Company (LLY) carries a lower debt/equity ratio of 2% versus 6% for Amgen Inc. — giving it more financial flexibility in a downturn.

Eli Lilly and Company (LLY) is the more profitable company, earning 23.5% net margin versus 21.0% for Amgen Inc. — meaning it keeps 23.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AMGN leads at 40.5% versus 38.9% for LLY. At the gross margin level — before operating expenses — AMGN leads at 82.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Eli Lilly and Company (LLY) is the more undervalued stock at a PEG of 5.02x versus Amgen Inc.'s 5.89x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Amgen Inc. (AMGN) trades at 17.3x forward P/E versus 30.9x for Eli Lilly and Company — 13.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LLY: 15.4% to $1214.28.

In this comparison, LLY (0.5% yield) pays a dividend. AMGN does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Eli Lilly and Company (LLY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.65), +1412% 10Y return). Both have compounded well over 10 years (LLY: +1412%, AMGN: +221.6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.