Amgen vs. Moderna: Which Healthcare Stock Is a Better Buy in 2026?

Should you bet on an established giant or a pipeline-driven innovator? This comparison examines Amgen (NASDAQ:AMGN) and Moderna (NASDAQ:MRNA) to see which stock is a better buy today.

Amgen is a veteran in the drug manufacturing world, focusing on long-term stability and diverse treatments for chronic conditions. Moderna is a biotechnology pioneer that transformed during the pandemic and is now pivoting toward a broader mRNA platform. Both companies operate in a competitive environment, but they offer very different risk and reward profiles for investors.

The case for Amgen

Amgen operates by discovering and marketing medicines for serious conditions such as heart disease, obesity, and cancer. The company functions within the biotech stocks category, serving approximately 17 million patients globally. Its commercial success depends heavily on three distributors: McKesson (NYSE:MCK), Cencora (NYSE:COR), and Cardinal Health (NYSE:CAH). These three partners accounted for 77% of gross revenues in 2025. Customer concentration like this adds a layer of risk to the business.

In its latest annual report, filed for FY 2025, revenue reached nearly $36.7 billion. This represents a growth rate of roughly 9.9% compared to the previous year. Amgen reported net income of approximately $7.7 billion for the same period. The company achieved a net margin of 21%, which measures the portion of revenue that remains as profit after all expenses are paid.

As of its December 2025 balance sheet, the debt-to-equity ratio was 6.3x. This ratio indicates that total debt is more than six times the value of shareholder equity. Amgen also reported a current ratio of 1.1x, suggesting it has enough short-term assets to cover its immediate debts. Free cash flow, which is operating cash minus capital spending, was nearly $8.1 billion in FY 2025.

The case for Moderna

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. The company also works with international partners to expand its reach. For instance, it has a collaboration with Merck (NYSE:MRK) to develop specialized cancer treatments. Sales remain highly dependent on the accuracy of vaccine demand forecasts.

In its latest annual report, filed for FY 2025, revenue was close to $1.9 billion. This was a decline of approximately 39.2% from the prior year as demand for pandemic-related products shifted. Moderna reported a net loss of nearly $2.8 billion for the fiscal year. This resulted in a negative net margin of 145.2%, reflecting the high costs of research and development relative to current sales.

Based on its December 2025 balance sheet, the debt-to-equity ratio was roughly 0.2x. This indicates a much lower reliance on debt compared to Amgen. The company maintained a current ratio of 3.3x, showing a high level of liquid assets. However, free cash flow was negative $2.1 billion for FY 2025, as the company continued to invest heavily in its future drug pipeline.

Risk profile comparison

Amgen faces significant risks from government regulation regarding drug pricing, including provisions in the Inflation Reduction Act. The company also faces pressure from biosimilars as patents for major products like Prolia and XGEVA have expired. Litigation risks remain elevated, including an ongoing tax dispute with the IRS regarding profit allocation in Puerto Rico. Furthermore, Amgen is vulnerable to infrastructure disruptions at its primary manufacturing sites in California and Puerto Rico.

Moderna faces intense competition from established pharmaceutical giants such as Pfizer (NYSE:PFE), Sanofi (NASDAQ:SNY), and GSK (NYSE:GSK). Its business carries high clinical development risk because mRNA technology is still a relatively novel field with complex manufacturing requirements. Financial results are also impacted by legal costs, such as a patent settlement with Arbutus Biopharma (NASDAQ:ABUS). Additionally, Moderna relies on single-source suppliers for certain raw materials, which creates supply chain vulnerability.

Valuation comparison

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

I'd go with Amgen, and the case for it is straightforward. Multiple brands are growing at a double-digit rate, the full-year outlook has been raised, and the dividend keeps growing. That combination is hard to find in biotech right now. Some of its older drugs face competition from cheaper alternatives, but the rest of the business is strong enough to carry the weight, and new drugs in development could add to the growth story down the road.

Moderna is doing interesting work across a broad pipeline, and its mRNA flu vaccine just received a unanimous positive recommendation from the FDA's advisory committee. But the company is still losing a substantial amount of money every quarter, current revenue is tiny relative to its ambitions, and the norovirus vaccine program just hit a setback in its phase 3 trial. The entire investment case rests on clinical trial outcomes that may be years away.

For a long-term investor, owning a profitable, dividend-paying biotech that is already executing beats waiting on a pipeline that still has a lot to prove.

Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amgen, Merck, Moderna, and Pfizer. The Motley Fool recommends GSK and McKesson. The Motley Fool has a disclosure policy.