GSK (GSK) Competitors

Novartis (NYSE:NVS) and GSK (NYSE:GSK) are both large-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, media sentiment, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Is NVS or GSK a better dividend stock?

Novartis pays an annual dividend of $2.59 per share and has a dividend yield of 2.0%. GSK pays an annual dividend of $1.68 per share and has a dividend yield of 3.9%. Novartis pays out 37.7% of its earnings in the form of a dividend. GSK pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Does the media refer more to NVS or GSK?

In the previous week, Novartis had 20 more articles in the media than GSK. MarketBeat recorded 24 mentions for Novartis and 4 mentions for GSK. Novartis' average media sentiment score of 1.11 beat GSK's score of 0.52 indicating that Novartis is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Novartis	17 Very Positive mention(s)	4 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
GSK	2 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals have more ownership in NVS or GSK?

13.1% of Novartis shares are held by institutional investors. Comparatively, 15.7% of GSK shares are held by institutional investors. 0.0% of Novartis shares are held by insiders. Comparatively, 10.0% of GSK shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Which has better earnings and valuation, NVS or GSK?

Novartis has higher revenue and earnings than GSK. Novartis is trading at a lower price-to-earnings ratio than GSK, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novartis	$55.19B	5.04	$11.94B	$6.87	19.17
GSK	$31.63B	2.79	$3.29B	$2.16	20.11

Do analysts rate NVS or GSK?

Novartis currently has a consensus price target of $120.33, suggesting a potential downside of 8.63%. GSK has a consensus price target of $37.38, suggesting a potential downside of 13.95%. Given Novartis' stronger consensus rating and higher probable upside, analysts plainly believe Novartis is more favorable than GSK.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novartis	3 Sell rating(s)	4 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.10
GSK	1 Sell rating(s)	7 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.88

Is NVS or GSK more profitable?

Novartis has a net margin of 25.64% compared to GSK's net margin of 10.81%. GSK's return on equity of 49.22% beat Novartis' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Novartis	25.64%	41.08%	16.83%
GSK	10.81%	49.22%	11.31%

Which has more risk & volatility, NVS or GSK?

Novartis has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, GSK has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Summary

Novartis beats GSK on 14 of the 19 factors compared between the two stocks.