Olympus (OTCMKTS:OCPNY) and Gilead Sciences (NASDAQ:GILD) are both large-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Volatility and Risk
Olympus has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Gilead Sciences has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.
Valuation and Earnings
This table compares Olympus and Gilead Sciences' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Olympus | $7.32 billion | 4.05 | $475.36 million | $0.36 | 60.06 |
Gilead Sciences | $22.45 billion | 3.53 | $5.39 billion | $6.14 | 10.26 |
Gilead Sciences has higher revenue and earnings than Olympus. Gilead Sciences is trading at a lower price-to-earnings ratio than Olympus, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for Olympus and Gilead Sciences, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Olympus | 0 | 0 | 0 | 1 | 4.00 |
Gilead Sciences | 1 | 12 | 12 | 0 | 2.44 |
Gilead Sciences has a consensus price target of $96.0370, indicating a potential upside of 52.42%. Given Gilead Sciences' higher probable upside, analysts clearly believe Gilead Sciences is more favorable than Olympus.
Dividends
Olympus pays an annual dividend of $0.07 per share and has a dividend yield of 0.3%. Gilead Sciences pays an annual dividend of $2.72 per share and has a dividend yield of 4.3%. Olympus pays out 19.4% of its earnings in the form of a dividend. Gilead Sciences pays out 44.3% 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. Gilead Sciences has raised its dividend for 1 consecutive years. Gilead Sciences is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
0.1% of Olympus shares are held by institutional investors. Comparatively, 76.4% of Gilead Sciences shares are held by institutional investors. 0.1% of Gilead Sciences shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Olympus and Gilead Sciences' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Olympus | 5.34% | 10.82% | 3.98% |
Gilead Sciences | 5.48% | 37.77% | 12.76% |
Summary
Gilead Sciences beats Olympus on 12 of the 18 factors compared between the two stocks.