Gilead Sciences vs Merck Indonesia Which Is More Promising?

Gilead Sciences and Merck Indonesia are two prominent pharmaceutical companies that have gained recognition in the industry for their innovative drug development and research efforts. As key players in the healthcare sector, investors often compare the performance of their stocks to make informed decisions. Gilead Sciences is known for its breakthrough treatments in HIV/AIDS, while Merck Indonesia focuses on a wide range of therapeutic areas. Understanding the financial performance and market dynamics of these companies can provide valuable insights for investors seeking to diversify their portfolios in the pharmaceutical sector.

Gilead Sciences or Merck Indonesia?

When comparing Gilead Sciences and Merck Indonesia, 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 Merck Indonesia.

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 3.31%, while Merck Indonesia has a dividend yield of 9.22%. 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, Merck Indonesia reports a 5-year dividend growth of 3.08% year and a payout ratio of 115.53%.

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 913.87 and Merck Indonesia's P/E ratio at 12.51. 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 6.23 while Merck Indonesia's P/B ratio is 2.13.

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 Merck Indonesia's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Gilead Sciences's ROE at 0.65% and Merck Indonesia's ROE at 16.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $90.64 for Gilead Sciences and Rp3460.00 for Merck Indonesia. Over the past year, Gilead Sciences's prices ranged from $62.07 to $98.90, with a yearly change of 59.34%. Merck Indonesia's prices fluctuated between Rp3390.00 and Rp4400.00, with a yearly change of 29.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.