Gilead Sciences vs GSK Which Performs Better?

Gilead Sciences and GlaxoSmithKline (GSK) are two well-known pharmaceutical companies that have garnered significant attention in the stock market. Gilead Sciences is known for its focus on antiviral drugs, particularly in the treatment of HIV and Hepatitis C, while GSK is a diversified healthcare company with a strong presence in pharmaceuticals, vaccines, and consumer healthcare products. Both companies have experienced fluctuations in their stock prices as a result of regulatory approvals, drug development pipelines, and market trends. Investors often compare and analyze the performance of Gilead Sciences and GSK stocks to make informed decisions on their investment strategies.

Gilead Sciences or GSK?

When comparing Gilead Sciences 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 Gilead Sciences 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. Gilead Sciences has a dividend yield of 3.35%, while GSK has a dividend yield of 4.59%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Gilead Sciences reports a 5-year dividend growth of 5.64% year and a payout ratio of 3862.70%. 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 Gilead Sciences P/E ratio at 909.07 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. Gilead Sciences P/B ratio is 6.20 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, Gilead Sciences has seen a 5-year revenue growth of 0.27%, while GSK's is -0.53%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Gilead Sciences's ROE at 0.65% and GSK's ROE at 18.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $89.15 for Gilead Sciences and $33.75 for GSK. Over the past year, Gilead Sciences's prices ranged from $62.07 to $98.90, with a yearly change of 59.34%. 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.