AstraZeneca vs Gilead Sciences Which Is More Profitable?

AstraZeneca and Gilead Sciences are two pharmaceutical giants that have been making headlines in the stock market recently. AstraZeneca has seen a rise in its stock price due to successful drug developments and promising clinical trials. On the other hand, Gilead Sciences has faced challenges with patent expirations and competition in the market. Investors are closely watching both companies as they navigate the ever-changing landscape of the healthcare industry.

AstraZeneca or Gilead Sciences?

When comparing AstraZeneca and Gilead Sciences, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AstraZeneca and Gilead Sciences.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AstraZeneca has a dividend yield of 2.2%, while Gilead Sciences has a dividend yield of 3.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AstraZeneca reports a 5-year dividend growth of 0.42% year and a payout ratio of 71.25%. On the other hand, Gilead Sciences reports a 5-year dividend growth of 5.64% year and a payout ratio of 3862.70%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AstraZeneca P/E ratio at 31.95 and Gilead Sciences's P/E ratio at 914.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AstraZeneca P/B ratio is 5.10 while Gilead Sciences's P/B ratio is 6.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AstraZeneca has seen a 5-year revenue growth of 0.70%, while Gilead Sciences's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AstraZeneca's ROE at 16.57% and Gilead Sciences's ROE at 0.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $66.92 for AstraZeneca and $91.44 for Gilead Sciences. Over the past year, AstraZeneca's prices ranged from $60.47 to $87.68, with a yearly change of 45.00%. Gilead Sciences's prices fluctuated between $62.07 and $98.90, with a yearly change of 59.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.