Better Buy: Gilead or Amgen?

In the following video, Fool contributor Maxx Chatsko explains whether he thinks Gilead Sciences (NASDAQ: GILD  ) or Amgen (NASDAQ: AMGN  ) is the better buy. Both companies are trading at nearly identical market caps and have risen dramatically since the beginning of 2012 in anticipation of new blockbuster products. Both have robust pipelines stuffed full of potential at all levels of development. This is going to be a tough decision. If these companies are on your watchlist or if you're simply looking to add to a position, then you may want to use the current market volatility to your advantage.

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  • Report this Comment On June 25, 2013, at 3:14 PM, DrGoldin wrote:

    One point that I think you should have added: you're right when you say that Amgen and Gilead have similar valuations ($72B for Amgen and and $75.9B for Gilead), but their trailing p/e's are in totally different ballparks: 16.26 for Amgen vs. 32.46 for Gilead. This only supports your theme that a whole lot of optimism is already built into Gilead's share price. (If you look at future p/e projections, the gap starts to narrow quickly.)

    I'd still go with Gilead though. What's that saying? Better to get a great company at a good price than a good company at a great price.

  • Report this Comment On June 26, 2013, at 8:45 AM, TMFBlacknGold wrote:

    @DrGoldin

    I thought I pointed out P/E in the video (it was in my bullet points if I did skip over it during filming). But I certainly admit that it is a close call. Also, you remind me that I need to get back into CAPS!

    Take care and Fool on!

    Maxxwell

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