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.
Johnson & Johnson (NYSE:JNJ) and GSK (NYSE:GSK) are both large-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, community ranking, profitability, institutional ownership, valuation, dividends, risk, media sentiment and earnings.
Johnson & Johnson has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, GSK has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.
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 pays an annual dividend of $4.96 per share and has a dividend yield of 3.4%. GSK pays an annual dividend of $1.47 per share and has a dividend yield of 3.3%. Johnson & Johnson pays out 30.9% of its earnings in the form of a dividend. GSK pays out 53.3% 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. Johnson & Johnson has raised its dividend for 63 consecutive years. Johnson & Johnson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Johnson & Johnson had 25 more articles in the media than GSK. MarketBeat recorded 37 mentions for Johnson & Johnson and 12 mentions for GSK. GSK's average media sentiment score of 0.60 beat Johnson & Johnson's score of 0.46 indicating that Johnson & Johnson is being referred to more favorably in the media.
Johnson & Johnson currently has a consensus target price of $174.07, indicating a potential upside of 18.68%. GSK has a consensus target price of $47.00, indicating a potential upside of 4.98%. Given GSK's stronger consensus rating and higher possible upside, equities research analysts clearly believe Johnson & Johnson is more favorable than GSK.
Johnson & Johnson has a net margin of 45.26% compared to Johnson & Johnson's net margin of 14.62%. Johnson & Johnson's return on equity of 51.54% beat GSK's return on equity.
Johnson & Johnson received 275 more outperform votes than GSK when rated by MarketBeat users. Likewise, 64.93% of users gave Johnson & Johnson an outperform vote while only 57.00% of users gave GSK an outperform vote.
69.6% of Johnson & Johnson shares are held by institutional investors. Comparatively, 15.7% of GSK shares are held by institutional investors. 0.2% of Johnson & Johnson 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, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Johnson & Johnson beats GSK on 17 of the 21 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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