Biogen vs Gilead Sciences Which Should You Buy?

Biogen and Gilead Sciences are two prominent biotechnology companies known for their innovative research and development in the healthcare sector. Both companies have experienced fluctuations in their stock prices due to various factors, including drug approvals, clinical trials, and market competition. Investors closely monitor their performance and financial reports to make informed decisions on buying or selling their stocks. Understanding the dynamics between Biogen and Gilead Sciences can provide valuable insights for investors seeking to diversify their portfolio and capitalize on potential opportunities in the biotech industry.

Biogen or Gilead Sciences?

When comparing Biogen 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 Biogen 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. Biogen has a dividend yield of -%, while Gilead Sciences has a dividend yield of 3.35%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Biogen reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Biogen P/E ratio at 13.53 and Gilead Sciences's P/E ratio at 909.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Biogen P/B ratio is 1.34 while Gilead Sciences's P/B ratio is 6.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Biogen has seen a 5-year revenue growth of 0.04%, while Gilead Sciences's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Biogen's ROE at 10.38% 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 $149.94 for Biogen and $89.15 for Gilead Sciences. Over the past year, Biogen's prices ranged from $149.94 to $268.30, with a yearly change of 78.94%. 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.