Sanofi vs Gilead Sciences

Sanofi and Gilead Sciences are two pharmaceutical companies that are widely followed by investors in the healthcare sector. Sanofi, a French multinational pharmaceutical company, specializes in the development and distribution of various prescription medications and vaccines. On the other hand, Gilead Sciences, an American biotechnology company, focuses on the research and development of drugs for various diseases, including HIV/AIDS and hepatitis. Investors often compare these two companies' stocks to assess their financial performance and potential for growth in the industry.

Sanofi or Gilead Sciences?

When comparing Sanofi and Gilead Sciences, 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 Sanofi and Gilead Sciences.

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. Sanofi has a dividend yield of 2.95%, while Gilead Sciences has a dividend yield of 4.46%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sanofi reports a 5-year dividend growth of 12.94% year and a payout ratio of 59.74%. On the other hand, Gilead Sciences reports a 5-year dividend growth of 5.64% year and a payout ratio of 366.38%.

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 Sanofi P/E ratio at 15.90 and Gilead Sciences's P/E ratio at 101.63. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sanofi P/B ratio is 1.72 while Gilead Sciences's P/B ratio is 5.85.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sanofi has seen a 5-year revenue growth of 0.20%, while Gilead Sciences's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sanofi's ROE at 10.71% and Gilead Sciences's ROE at 5.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.84 for Sanofi and $84.80 for Gilead Sciences. Over the past year, Sanofi's prices ranged from $42.63 to $58.97, with a yearly change of 38.33%. Gilead Sciences's prices fluctuated between $62.07 and $87.87, with a yearly change of 41.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.