Gilead Sciences vs Novartis Which Is More Profitable?

Gilead Sciences and Novartis are two major players in the pharmaceutical industry, known for their innovative drug development and research. Both companies have a strong presence in the market and have seen steady growth in their stocks over the years. Gilead Sciences is a leader in the HIV and hepatitis C treatment market, while Novartis is known for its diverse portfolio of drugs across multiple therapeutic areas. Investors looking for opportunities in the healthcare sector should closely monitor the performance of these two companies.

Gilead Sciences or Novartis?

When comparing Gilead Sciences and Novartis, 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 Novartis.

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 3.32%, while Novartis has a dividend yield of 7.41%. 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, Novartis reports a 5-year dividend growth of 5.40% year and a payout ratio of 43.31%.

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 911.79 and Novartis's P/E ratio at 11.66. 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 6.22 while Novartis's P/B ratio is 4.74.

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 Novartis's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Gilead Sciences's ROE at 0.65% and Novartis's ROE at 41.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $92.03 for Gilead Sciences and $101.97 for Novartis. Over the past year, Gilead Sciences's prices ranged from $62.07 to $98.90, with a yearly change of 59.34%. Novartis's prices fluctuated between $92.35 and $120.92, with a yearly change of 30.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.