GSK vs. JNJ, MRK, ABBV, AZN, NVS, ABT, PFE, SNY, VRTX, and REGN
Should you be buying GSK stock or one of its competitors? The main competitors of GSK include Johnson & Johnson (JNJ), Merck & Co., Inc. (MRK), AbbVie (ABBV), AstraZeneca (AZN), Novartis (NVS), Abbott Laboratories (ABT), Pfizer (PFE), Sanofi (SNY), Vertex Pharmaceuticals (VRTX), and Regeneron Pharmaceuticals (REGN). These companies are all part of the "pharmaceutical preparations" industry.
GSK (NYSE:GSK) and Johnson & Johnson (NYSE:JNJ) are both large-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, community ranking, earnings, media sentiment, analyst recommendations and profitability.
15.7% of GSK shares are owned by institutional investors. Comparatively, 69.6% of Johnson & Johnson shares are owned by institutional investors. 10.0% of GSK shares are owned by insiders. Comparatively, 0.2% of Johnson & Johnson shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Johnson & Johnson has higher revenue and earnings than GSK. Johnson & Johnson is trading at a lower price-to-earnings ratio than GSK, indicating that it is currently the more affordable of the two stocks.
Johnson & Johnson has a consensus target price of $175.86, suggesting a potential upside of 21.78%. Given Johnson & Johnson's stronger consensus rating and higher probable upside, analysts plainly believe Johnson & Johnson is more favorable than GSK.
Johnson & Johnson has a net margin of 45.26% compared to GSK's net margin of 14.62%. GSK's return on equity of 51.54% beat Johnson & Johnson's return on equity.
In the previous week, Johnson & Johnson had 10 more articles in the media than GSK. MarketBeat recorded 33 mentions for Johnson & Johnson and 23 mentions for GSK. GSK's average media sentiment score of 0.59 beat Johnson & Johnson's score of 0.49 indicating that GSK is being referred to more favorably in the media.
Johnson & Johnson received 275 more outperform votes than GSK when rated by MarketBeat users. Likewise, 64.97% of users gave Johnson & Johnson an outperform vote while only 57.04% of users gave GSK an outperform vote.
GSK pays an annual dividend of $1.47 per share and has a dividend yield of 3.3%. Johnson & Johnson pays an annual dividend of $4.96 per share and has a dividend yield of 3.4%. GSK pays out 53.3% of its earnings in the form of a dividend. Johnson & Johnson pays out 30.9% 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. Johnson & Johnson is clearly the better dividend stock, given its higher yield and lower payout ratio.
GSK has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Johnson & Johnson has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.
Summary
Johnson & Johnson beats GSK on 15 of the 20 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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