GSK vs. BMY, REGN, ZTS, VRTX, SNY, TAK, PFE, ABT, NVS, and AZN
Should you be buying GSK stock or one of its competitors? The main competitors of GSK include Bristol-Myers Squibb (BMY), Regeneron Pharmaceuticals (REGN), Zoetis (ZTS), Vertex Pharmaceuticals (VRTX), Sanofi (SNY), Takeda Pharmaceutical (TAK), Pfizer (PFE), Abbott Laboratories (ABT), Novartis (NVS), and AstraZeneca (AZN). These companies are all part of the "pharmaceutical preparations" industry.
GSK (NYSE:GSK) and Bristol-Myers Squibb (NYSE:BMY) are both large-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, media sentiment, community ranking, earnings and profitability.
In the previous week, Bristol-Myers Squibb had 3 more articles in the media than GSK. MarketBeat recorded 39 mentions for Bristol-Myers Squibb and 36 mentions for GSK. GSK's average media sentiment score of 0.73 beat Bristol-Myers Squibb's score of 0.39 indicating that GSK is being referred to more favorably in the media.
15.7% of GSK shares are owned by institutional investors. Comparatively, 76.4% of Bristol-Myers Squibb shares are owned by institutional investors. 10.0% of GSK shares are owned by insiders. Comparatively, 0.1% of Bristol-Myers Squibb shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
GSK has a net margin of 14.62% compared to Bristol-Myers Squibb's net margin of -13.50%. GSK's return on equity of 51.54% beat Bristol-Myers Squibb's return on equity.
GSK has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Bristol-Myers Squibb has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.
Bristol-Myers Squibb has a consensus target price of $60.00, indicating a potential upside of 36.39%. Given Bristol-Myers Squibb's higher probable upside, analysts clearly believe Bristol-Myers Squibb is more favorable than GSK.
GSK pays an annual dividend of $1.59 per share and has a dividend yield of 3.7%. Bristol-Myers Squibb pays an annual dividend of $2.40 per share and has a dividend yield of 5.5%. GSK pays out 57.6% of its earnings in the form of a dividend. Bristol-Myers Squibb pays out -77.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bristol-Myers Squibb is clearly the better dividend stock, given its higher yield and lower payout ratio.
Bristol-Myers Squibb received 268 more outperform votes than GSK when rated by MarketBeat users. Likewise, 66.87% of users gave Bristol-Myers Squibb an outperform vote while only 57.04% of users gave GSK an outperform vote.
Bristol-Myers Squibb has higher revenue and earnings than GSK. Bristol-Myers Squibb is trading at a lower price-to-earnings ratio than GSK, indicating that it is currently the more affordable of the two stocks.
Summary
GSK beats Bristol-Myers Squibb on 10 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding GSK and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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