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

Institutional and Insider Ownership

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

Earnings & Valuation

This table compares Bristol-Myers Squibb and Amphastar Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bristol-Myers Squibb $20.24 billion 5.06 $6.01 billion $2.75 22.72
Amphastar Pharmaceuticals $249.62 million 2.90 $17.41 million $0.08 196.15

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.

Dividends

Bristol-Myers Squibb pays an annual dividend of $1.56 per share and has a dividend yield of 2.5%. Amphastar Pharmaceuticals does not pay a dividend. Bristol-Myers Squibb pays out 56.7% of its earnings in the form of a dividend. Amphastar Pharmaceuticals has increased its dividend for 7 consecutive years.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bristol-Myers Squibb 1 8 9 0 2.44
Amphastar Pharmaceuticals 0 1 5 0 2.83

Bristol-Myers Squibb currently has a consensus price target of $61.71, suggesting a potential downside of 1.23%. Amphastar Pharmaceuticals has a consensus price target of $19.83, suggesting a potential upside of 26.41%. Given Amphastar Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Amphastar Pharmaceuticals is more favorable than Bristol-Myers Squibb.

Profitability

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

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

Volatility & Risk

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

Summary

Bristol-Myers Squibb beats Amphastar Pharmaceuticals on 10 of the 17 factors compared between the two stocks.

About Bristol-Myers Squibb

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.

About Amphastar Pharmaceuticals

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.

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