GSK vs Merck Indonesia Which Outperforms?

GSK and Merck are two major pharmaceutical companies with operations in Indonesia. Both companies have a strong presence in the Indonesian market, and their stocks are closely watched by investors. GSK, known for its focus on healthcare products, and Merck, a leader in innovative pharmaceuticals, have been competing for market share in Indonesia. This comparison of their stocks will provide an insight into the performance and potential growth of these two companies in the Indonesian market.

GSK or Merck Indonesia?

When comparing GSK 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 GSK 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. GSK has a dividend yield of 4.42%, 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. GSK reports a 5-year dividend growth of -4.37% year and a payout ratio of 95.58%. 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 GSK P/E ratio at 22.39 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. GSK P/B ratio is 4.01 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, GSK has seen a 5-year revenue growth of -0.53%, while Merck Indonesia's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GSK's ROE at 18.08% 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 $35.18 for GSK and Rp3460.00 for Merck Indonesia. Over the past year, GSK's prices ranged from $32.83 to $45.93, with a yearly change of 39.90%. 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.