Haleon vs GSK Which Is More Profitable?

Haleon and GSK are two pharmaceutical companies with stocks that attract investors' attention due to their strong market presence and potential for growth. Haleon is known for its innovative drug development and strategic acquisitions, while GSK is a globally recognized brand with a diverse product portfolio. Investors are closely monitoring these stocks to assess their performance and potential for future returns in the competitive pharmaceutical industry. The comparison between Haleon and GSK stocks provides valuable insights for investors seeking to diversify their portfolio and capitalize on the dynamic healthcare sector.

Haleon or GSK?

When comparing Haleon and GSK, 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 Haleon and GSK.

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. Haleon has a dividend yield of 2.04%, while GSK has a dividend yield of 4.59%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Haleon reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, GSK reports a 5-year dividend growth of -4.37% year and a payout ratio of 95.58%.

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 Haleon P/E ratio at 65.24 and GSK's P/E ratio at 21.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Haleon P/B ratio is 4.28 while GSK's P/B ratio is 3.92.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Haleon has seen a 5-year revenue growth of 0.33%, while GSK's is -0.53%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Haleon's ROE at 6.54% and GSK's ROE at 18.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $9.71 for Haleon and $33.75 for GSK. Over the past year, Haleon's prices ranged from $7.89 to $10.80, with a yearly change of 36.88%. GSK's prices fluctuated between $32.83 and $45.93, with a yearly change of 39.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.