GSK (GSK) Competitors

GSK (NYSE:GSK) and Novo Nordisk A/S (NYSE:NVO) are both large-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, community ranking, analyst recommendations, profitability, media sentiment, valuation, institutional ownership, earnings and dividends.

Is GSK or NVO more profitable?

Novo Nordisk A/S has a net margin of 34.81% compared to GSK's net margin of 8.13%. Novo Nordisk A/S's return on equity of 84.68% beat GSK's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
GSK	8.13%	48.59%	11.11%
Novo Nordisk A/S	34.81%	84.68%	26.29%

Does the MarketBeat Community believe in GSK or NVO?

GSK received 390 more outperform votes than Novo Nordisk A/S when rated by MarketBeat users. However, 61.74% of users gave Novo Nordisk A/S an outperform vote while only 57.10% of users gave GSK an outperform vote.

Company	Underperform	Outperform
GSK	Outperform Votes 824 57.10%	Underperform Votes 619 42.90%
Novo Nordisk A/S	Outperform Votes 434 61.74%	Underperform Votes 269 38.26%

Which has stronger earnings and valuation, GSK or NVO?

Novo Nordisk A/S has higher revenue and earnings than GSK. Novo Nordisk A/S 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
GSK	$31.38B	2.55	$3.29B	$1.59	24.37
Novo Nordisk A/S	$290.40B	1.01	$14.64B	$3.29	19.96

Which has more volatility and risk, GSK or NVO?

GSK has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Novo Nordisk A/S has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Is GSK or NVO a better dividend stock?

GSK pays an annual dividend of $1.60 per share and has a dividend yield of 4.1%. Novo Nordisk A/S pays an annual dividend of $1.63 per share and has a dividend yield of 2.5%. GSK pays out 100.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Novo Nordisk A/S pays out 49.5% of its earnings in the form of a dividend.

Does the media favor GSK or NVO?

In the previous week, Novo Nordisk A/S had 17 more articles in the media than GSK. MarketBeat recorded 57 mentions for Novo Nordisk A/S and 40 mentions for GSK. GSK's average media sentiment score of 0.63 beat Novo Nordisk A/S's score of 0.62 indicating that GSK is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
GSK	13 Very Positive mention(s)	6 Positive mention(s)	14 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Novo Nordisk A/S	27 Very Positive mention(s)	6 Positive mention(s)	13 Neutral mention(s)	6 Negative mention(s)	3 Very Negative mention(s)	Positive

Do analysts prefer GSK or NVO?

GSK currently has a consensus target price of $40.58, indicating a potential upside of 4.74%. Novo Nordisk A/S has a consensus target price of $135.00, indicating a potential upside of 105.57%. Given Novo Nordisk A/S's higher possible upside, analysts clearly believe Novo Nordisk A/S is more favorable than GSK.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GSK	1 Sell rating(s)	8 Hold rating(s)	0 Buy rating(s)	3 Strong Buy rating(s)	2.42
Novo Nordisk A/S	2 Sell rating(s)	5 Hold rating(s)	5 Buy rating(s)	1 Strong Buy rating(s)	2.38

Do institutionals & insiders have more ownership in GSK or NVO?

15.7% of GSK shares are held by institutional investors. Comparatively, 11.5% of Novo Nordisk A/S shares are held by institutional investors. 10.0% of GSK shares are held by company insiders. Comparatively, 0.1% of Novo Nordisk A/S shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Novo Nordisk A/S beats GSK on 12 of the 21 factors compared between the two stocks.