GSK vs Sanofi Which Performs Better?

GSK and Sanofi are two major pharmaceutical companies that are frequently compared in terms of their stock performance. GSK, also known as GlaxoSmithKline, is a British multinational company focusing on developing innovative medicines and vaccines. Sanofi, on the other hand, is a French multinational pharmaceutical company known for its diverse portfolio of healthcare products. Investors often analyze the strengths and weaknesses of both companies to determine which stock offers the best potential for growth and profitability in the pharmaceutical industry.

GSK or Sanofi?

When comparing GSK and Sanofi, 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 Sanofi.

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 4.38%, while Sanofi has a dividend yield of 3.26%. 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, Sanofi reports a 5-year dividend growth of 12.94% year and a payout ratio of 0.00%.

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 22.06 and Sanofi's P/E ratio at 13.48. 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 3.96 while Sanofi's P/B ratio is 1.30.

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 -0.05%, while Sanofi's is 0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GSK's ROE at 18.08% and Sanofi's ROE at 9.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $34.36 for GSK and $47.57 for Sanofi. Over the past year, GSK's prices ranged from $34.29 to $45.93, with a yearly change of 33.95%. Sanofi's prices fluctuated between $45.22 and $58.97, with a yearly change of 30.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.