Biogen vs GSK Which Performs Better?

Biogen and GSK are two leading pharmaceutical companies that have attracted the attention of investors looking to capitalize on the growing healthcare sector. Both companies have a strong track record of developing innovative drugs and treatments for various diseases. Biogen is known for its focus on neurological disorders, while GSK has a diversified portfolio spanning vaccines, consumer healthcare, and pharmaceuticals. Investors are closely following the performance of these stocks, anticipating potential growth opportunities and risks in the ever-evolving healthcare market.

Biogen or GSK?

When comparing Biogen and GSK, 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 GSK.

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 GSK has a dividend yield of 4.59%. 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, GSK reports a 5-year dividend growth of -4.37% year and a payout ratio of 95.58%.

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 GSK's P/E ratio at 21.83. 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 GSK's P/B ratio is 3.91.

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 GSK's is -0.53%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Biogen's ROE at 10.38% and GSK's ROE at 18.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $149.94 for Biogen and $33.75 for GSK. Over the past year, Biogen's prices ranged from $149.94 to $268.30, with a yearly change of 78.94%. GSK's prices fluctuated between $32.83 and $45.93, with a yearly change of 39.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.