GSK vs Pfizer Which Is More Profitable?

GSK (GlaxoSmithKline) and Pfizer are both formidable players in the pharmaceutical industry, each boasting significant market capitalization and a strong global presence. As two of the largest pharmaceutical companies in the world, GSK and Pfizer's stocks are closely watched by investors seeking exposure to the healthcare sector. While both companies have faced challenges and opportunities in recent years, their stocks continue to be popular choices for investors looking to capitalize on the ever-evolving healthcare landscape.

GSK or Pfizer?

When comparing GSK and Pfizer, 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 Pfizer.

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 Pfizer has a dividend yield of 6.57%. 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, Pfizer reports a 5-year dividend growth of 3.82% year and a payout ratio of 221.76%.

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 Pfizer's P/E ratio at 34.02. 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 Pfizer's P/B ratio is 1.57.

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 Pfizer's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GSK's ROE at 18.08% and Pfizer's ROE at 4.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $35.18 for GSK and $25.51 for Pfizer. Over the past year, GSK's prices ranged from $32.83 to $45.93, with a yearly change of 39.90%. Pfizer's prices fluctuated between $24.48 and $31.54, with a yearly change of 28.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.