Amgen vs. Pfizer: Which Healthcare Stock Is a Better Buy for 2027?
Can a growth-oriented biotech giant outpace a value-leaning pharmaceutical titan? Choosing between Amgen Inc. (AMGN -1.01%) and Pfizer Inc. (PFE +0.86%) requires weighing current income against future pipeline potential in an evolving market.
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AMGN & PFE: Performance Comparison
Key Financial Metrics
AMGN – Amgen
$473.65
–1.01% (-$4.83)
PFE – Pfizer
$31.06
+0.86% (+$0.27)
Market Cap
$259B
52wk Range
$312.39 – $483.99
Gross Margin
84.89%
P/E Ratio
27.75
EPS (TTM)
$17.24
Dividend & Yield
$9.94 (2.08%)
Market Cap
$175B
52wk Range
$23.62 – $31.44
Gross Margin
65.10%
P/E Ratio
44.04
EPS (TTM)
$0.70
Dividend & Yield
$1.72 (5.59%)
AMGN – Amgen
$473.65
–1.01% (-$4.83)
Market Cap
$259B
52wk Range
$312.39 – $483.99
Gross Margin
84.89%
P/E Ratio
27.75
EPS (TTM)
$17.24
Dividend & Yield
$9.94 (2.08%)
PFE – Pfizer
$31.06
+0.86% (+$0.27)
Market Cap
$175B
52wk Range
$23.62 – $31.44
Gross Margin
65.10%
P/E Ratio
44.04
EPS (TTM)
$0.70
Dividend & Yield
$1.72 (5.59%)
Amgen focuses on specialized biological medicines, while Pfizer operates as a global pharmaceutical powerhouse with a broad footprint in vaccines and primary care. Both companies face patent cliffs and regulatory shifts, making this comparison essential for investors looking to balance risk and dividend stability heading into 2027.
The case for Amgen
In its latest annual report, filed for the fiscal year ended Dec. 31, 2025, Amgen describes its focus on oncology and rare diseases. It delivers medicines to patients in approximately 100 countries through distributors like McKesson Corp. (MCK +3.17%), Cencora Inc. (COR -1.38%), and Cardinal Health Inc. (CAH +4.80%). These three partners account for 77% of revenue, and customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached about $36.7 billion, representing growth of approximately 10% over the previous year. This performance was driven by a portfolio of innovative drugs that serve general medicine and oncology patients globally. Net income for the period was around $7.7 billion, which resulted in a net margin of roughly 21%. This growth reflects strong demand for its therapeutic brands even as competition increases among biotech stocks.
As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 6.3x. This ratio measures total debt against shareholder equity, where a higher figure indicates a more leveraged capital structure. The company also reported a current ratio of roughly 1.1x, which compares its short-term assets to its short-term liabilities. Finally, it generated free cash flow of around $8.1 billion during the year. Free cash flow is the cash remaining after a company pays for its operations and capital equipment.
The case for Pfizer
Pfizer operates as a research-based biopharmaceutical firm with a presence in approximately 200 countries and territories. It develops vaccines and medicines for both developed and emerging markets to improve global health access. The company relies on a vast network of wholesale distributors and pharmacy chains, with Eliquis alone generating nearly 13% of 2025 revenue.
In FY 2025, revenue reached approximately $62.6 billion, a slight decline of roughly 1.6% compared to the prior year. This revenue level follows a period of normalization as the company transitions away from the height of pandemic-related demand. Net income for the fiscal period totaled close to $7.8 billion, resulting in a net margin of approximately 12.4%. This profitability highlights the company’s ability to maintain billions in earnings despite shifting market dynamics.
As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.8x. This level suggests a more conservative capital structure with less debt relative to equity than its peer. Pfizer maintained a current ratio of roughly 1.2x, providing a measure of its ability to cover short-term obligations with liquid assets. During the year, it produced free cash flow of nearly $9.1 billion. This metric represents the cash available after accounting for operating costs and capital expenditures.
Risk profile comparison
Amgen faces significant tax disputes with the IRS regarding profit allocation and pricing pressure from government programs on major drugs like Enbrel. Its heavy manufacturing presence in Puerto Rico makes it vulnerable to natural disasters and climate change. It also faces competition from AbbVie Inc. (ABBV +1.25%) and Regeneron Pharmaceuticals Inc. (REGN +0.42%).
Pfizer deals with high revenue concentration and litigation risks related to products like Depo-Provera and its COVID-19 treatments. Generic competition remains a constant threat as patents expire for its top-selling products. Competitors like Eli Lilly & Co. (LLY +0.38%) and Johnson & Johnson (JNJ +1.57%) continue to challenge its market share in major therapeutic areas.
Valuation comparison
Pfizer looks cheaper based on its lower Forward P/E and P/S ratio. These values compare stock price to future earnings estimates and sales over the past twelve months.
MetricAmgenPfizerForward P/E20.8×10.2xP/S ratio6.7×2.8x
Valuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.
Which stock would I buy for 2027?
Amgen is not a fast-growing company by sales, but, given its scale, it should be able to achieve a roughly 3% revenue increase in 2026, to around $37.8 billion. Such size forgives a lot with slower-growing pharmaceutical businesses. For one, its billions in net income could enable Amgen to pursue future growth by acquiring other drugmakers. The business also has six drug franchises that generate $1 billion-plus in annual revenue. There is real value there.
Late last year, Amgen became one of nine companies to reach a deal with the U.S. government to lower drug prices (Bristol Myers Squibb (BMY +0.80%), Merck & Co. (<a href="https://www.fool.com/quote/nyse/mrk
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.