Head to Head Analysis: Gilead Sciences (GILD) & Its Competitors

Gilead Sciences (NASDAQ:GILD) is one of 844 public companies in the “Biotechnology” industry, but how does it weigh in compared to its peers? We will compare Gilead Sciences to similar businesses based on the strength of its analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Dividends

Gilead Sciences pays an annual dividend of $3.28 per share and has a dividend yield of 1.9%. Gilead Sciences pays out -103.8% of its earnings in the form of a dividend. As a group, “Biotechnology” companies pay a dividend yield of 1.3% and pay out 48.4% of their earnings in the form of a dividend. Gilead Sciences has raised its dividend for 10 consecutive years. Gilead Sciences is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

83.7% of Gilead Sciences shares are held by institutional investors. Comparatively, 47.9% of shares of all “Biotechnology” companies are held by institutional investors. 0.3% of Gilead Sciences shares are held by company insiders. Comparatively, 13.0% of shares of all “Biotechnology” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Gilead Sciences has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Gilead Sciences’ peers have a beta of 1.15, meaning that their average share price is 15% more volatile than the S&P 500.

Profitability

This table compares Gilead Sciences and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gilead Sciences	-12.47%	-1.85%	-0.61%
Gilead Sciences Competitors	-9,051.23%	-201.20%	-30.64%

Earnings & Valuation

This table compares Gilead Sciences and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Gilead Sciences	$29.44 billion	$8.51 billion	-55.22
Gilead Sciences Competitors	$718.87 million	$12.16 million	-10.20

Gilead Sciences has higher revenue and earnings than its peers. Gilead Sciences is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Gilead Sciences and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gilead Sciences	0	6	23	0	2.79
Gilead Sciences Competitors	9789	15070	45344	1572	2.54

Gilead Sciences presently has a consensus price target of $170.15, indicating a potential downside of 2.48%. As a group, “Biotechnology” companies have a potential upside of 94.80%. Given Gilead Sciences’ peers higher probable upside, analysts plainly believe Gilead Sciences has less favorable growth aspects than its peers.

Summary

Gilead Sciences beats its peers on 10 of the 15 factors compared.

Gilead Sciences Company Profile

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, Sunlencs, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of COVID-19; and Epclusa, Harvoni, Vemlidy, and Viread for the treatment of viral hepatitis. It also offers Yescarta, Tecartus, and Trodelvy products for the treatment of oncology; Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. The company has collaboration agreements with Arcus Biosciences, Inc.; Merck Sharp & Dohme Corp.; Pionyr Immunotherapeutics Inc.; Tizona Therapeutics, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Dragonfly Therapeutics, Inc.; Arcellx, Inc.; Everest Medicines; Merck & Co, Inc.; Tentarix Biotherapeutics Inc.; and Assembly Biosciences, Inc. It also has research collaboration, option, and license agreement with Merus N.V. for the discovery of novel dual tumor-associated antigens (TAA) targeting trispecific antibodies. The company was incorporated in 1987 and is headquartered in Foster City, California.