Amgen Edges Out Moderna as Top Healthcare Stock Pick for 2026
Two healthcare stocks, Amgen (AMGN) and Moderna (MRNA), offer different investment opportunities for those looking to diversify their portfolios. While both companies operate in the biotech sector, they have distinct approaches to developing and marketing medicines.
Amgen is a seasoned player with a focus on long-term stability and diverse treatments for chronic conditions. Its commercial success relies heavily on three distributors: McKesson (MCK), Cencora (COR), and Cardinal Health (CAH). These partners accounted for 77% of gross revenues in 2025, adding a layer of risk to the business.
Amgen's revenue reached nearly $36.7 billion in FY 2025, representing a growth rate of roughly 9.9% compared to the previous year. The company achieved a net margin of 21%, with a debt-to-equity ratio of 6.3x and free cash flow of nearly $8.1 billion.
On the other hand, Moderna focuses on developing mRNA medicines for infectious diseases, cancer, and rare conditions. Its portfolio includes vaccines such as Spikevax and mRESVIA, with the mNEXSPIKE product leading its sales in the United States retail channel. However, Moderna's business carries high clinical development risk due to the novel nature of mRNA technology.
Moderna reported revenue of nearly $1.9 billion in FY 2025, a decline of approximately 39.2% from the prior year as demand for pandemic-related products shifted. The company maintained a current ratio of 3.3x but had negative free cash flow of $2.1 billion.
A comparison of valuation metrics shows that Amgen has a forward P/E of 19.1x, while Moderna's is significantly lower at N/AP/S ratio of 6.5x and 29.7x, respectively. The author concludes that Amgen is the better buy due to its profitable, dividend-paying business and execution of new growth drivers.