{
  "id": 15811205,
  "title": "Amgen vs. Bristol Myers Squibb: Which Healthcare Stock Is a Better Buy in 2026?",
  "url": "https://urgent.news/2026/10/20/amgen-vs-bristol-myers-squibb-which-healthcare-stock-is-a-better-buy",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-20T21:45:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/coverage/better-buy/2026/10/20/amgen-vs-bristol-myers-squibb-which-healthcare-stock-is-a-better-buy-in-2026/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "In evaluating Amgen (AMGN) and Bristol Myers Squibb (BMY) as potential investment options for 2026, it is essential to analyze their respective growth prospects and value metrics. Amgen specializes in biologics and complex medicines for serious illnesses, while Bristol Myers Squibb concentrates on oncology, hematology, and neuroscience treatments. Both are established players in the pharmaceutical industry, each offering a distinct mix of growth and stability for investors targeting large-cap healthcare exposure.\n\nOperating as a large biotech organization, Amgen discovers and develops innovative medicines across oncology and rare diseases. Its products are primarily distributed through McKesson Corp., Cencora, and Cardinal Health, with these wholesalers accounting for the majority of revenue, posing revenue concentration risks. Amgen reported $36.8 billion in revenue for FY 2025, marking a 10% growth year-over-year. This growth was driven by a robust portfolio in the inflammation and general medicine segments, with a net income of approximately $7.7 billion, yielding a net margin of about 21%. As of December 2025, Amgen's debt-to-equity ratio stands at 6.3x, and its current ratio is 1.1x, indicating adequate short-term liquidity. The company's free cash flow for the year was nearly $8.1 billion.\n\nOn the other hand, Bristol Myers Squibb operates as a global biopharmaceutical company, focusing on therapeutic areas such as oncology, hematology, and neuroscience. Its key products, such as Eliquis and Opdivo, are central to its revenue base, often managed through alliance arrangements for co-development. For FY 2025, Bristol Myers Squibb reported $48.2 billion in revenue, which was nearly flat compared to the prior year. The company generated net income of approximately $7.1 billion, resulting in a net margin of around 14.6%. Its December 2025 balance sheet shows a debt-to-equity ratio of about 2.6x, and a current ratio of 1.3x, reflecting a more robust short-term financial position. Bristol Myers Squibb's free cash flow for FY 2025 was approximately $12.8 billion, supporting dividend payments and potential acquisitions.\n\nWhen considering valuation, Bristol Myers Squibb appears more affordable to value-oriented investors, trading at lower multiples compared to Amgen based on sales and future earnings estimates. The Forward P/E ratio and P/S ratio for Bristol Myers Squibb are attractive, suggesting the stock is trading at a cheap valuation. However, this valuation reflects the ongoing challenges the company faces, including pricing constraints from government mandates like the Inflation Reduction Act and intellectual property disputes. Investors have likely priced in much of the upcoming difficulty, which softens the downside but does not make it an immediately compelling buy.\n\nAmgen, while not experiencing rapid growth, benefits from its scale, allowing it to potentially increase revenue and net income by pursuing acquisitions of other drugmakers. The company possesses six drug franchises that generate over $1 billion in annual revenue, providing a solid foundation for stability. Given its size, Amgen can absorb near-term headwinds and potentially emerge stronger, making it a relatively stable investment. Both companies offer dividend yields, with Amgen at 2.35% and Bristol Myers Squibb at 4.1%, appealing to income-focused investors.\n\nIn conclusion, the choice between Amgen and Bristol Myers Squibb boils down to investor priorities. For those seeking potentially lower risk and steady growth within the pharmaceutical sector, Amgen offers a compelling case with its established product pipeline and strong net income. Conversely, Bristol Myers Squibb presents a more affordable entry point, supported by attractive valuation metrics, though its future trajectory remains uncertain amid ongoing challenges. Investors should consider their risk tolerance and investment horizon when deciding between these two reputable healthcare stocks.",
  "summary": "Amgen boasts stronger revenue growth, while Bristol Myers Squibb generates nearly 60% more free cash flow at half the valuation.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Amgen vs. Bristol Myers Squibb: Which Healthcare Stock Is a Better Buy in 2026?",
        "url": "https://urgent.news/2026/10/20/amgen-vs-bristol-myers-squibb-which-healthcare-stock-is-a-better-buy-15811651",
        "published": "2026-10-20T22:05:02.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}