Daiichi Sankyo (OTCMKTS:DSNKY) and Gilead Sciences (NASDAQ:GILD) Head to Head Analysis

Daiichi Sankyo (OTCMKTS:DSNKY) and Gilead Sciences (NASDAQ:GILD) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Insider & Institutional Ownership

0.1% of Daiichi Sankyo shares are held by institutional investors. Comparatively, 82.3% of Gilead Sciences shares are held by institutional investors. 0.2% of Gilead Sciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Daiichi Sankyo and Gilead Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daiichi Sankyo	N/A	N/A	N/A
Gilead Sciences	21.45%	39.30%	13.45%

Valuation & Earnings

This table compares Daiichi Sankyo and Gilead Sciences’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daiichi Sankyo	N/A	N/A	N/A	$114.69	0.24
Gilead Sciences	$27.39 billion	3.46	$4.59 billion	$4.66	16.31

Gilead Sciences has higher revenue and earnings than Daiichi Sankyo. Daiichi Sankyo is trading at a lower price-to-earnings ratio than Gilead Sciences, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Daiichi Sankyo and Gilead Sciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daiichi Sankyo	1	1	0	0	1.50
Gilead Sciences	1	10	5	0	2.25

Gilead Sciences has a consensus price target of $88.22, indicating a potential upside of 16.08%. Given Gilead Sciences’ stronger consensus rating and higher probable upside, analysts plainly believe Gilead Sciences is more favorable than Daiichi Sankyo.

Dividends

Daiichi Sankyo pays an annual dividend of $22.47 per share and has a dividend yield of 83.1%. Gilead Sciences pays an annual dividend of $3.00 per share and has a dividend yield of 3.9%. Daiichi Sankyo pays out 19.6% of its earnings in the form of a dividend. Gilead Sciences pays out 64.4% 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 increased its dividend for 8 consecutive years. Daiichi Sankyo is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Gilead Sciences beats Daiichi Sankyo on 11 of the 14 factors compared between the two stocks.

About Daiichi Sankyo

Daiichi Sankyo Company, Limited manufactures, markets, and sells pharmaceutical products worldwide. The company offers Enhertu, a HER2 directed antibody drug conjugate; Turalio, a CSF-1R inhibitor; Vanflyta, a FLT3 inhibitor for the treatment of adult patients with relapsed/refractory FLT3-ITD acute myeloid leukemia; ferric carboxymaltose injection for treating anaemia; and Injectafer for the treatment for iron deficiency anaemia. It also provides olmesartan medoxomil antihypertensive agents; NILEMDO, an oral treatment to help in lowering cholesterol; and Nustendi, a fixed-dose combination tablet of bempedoic acid and ezetimibe for reducing cholesterol. In addition, the company offers Canalia for the treatment of type 2 diabetes mellitus; Emgalty for the treatment of migraine attacks; Pralia for the treatment of anti-osteoporosis/inhibitor of the progression of bone erosion associated with rheumatoid arthritis; Ranmark for the treatment of bone complications caused by bone metastasis from tumors; Tarlige for treating pain; Tenelia for the treatment of Type 2 diabetes mellitus; Venofer for the treatment of iron deficiency anemia; and Vimpat, an anti-epileptic agent. Further, it provides vaccines for influenza, measles/rubella infection, and mumps. The company has a development and commercialization agreement with Merck to jointly develop and commercialize Daiichi Sankyo's DXd antibody drug conjugate (ADC) candidates The company was founded in 1899 and is headquartered in Tokyo, Japan.

About Gilead Sciences

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, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of coronavirus disease 2019; and Epclusa, Harvoni, Vosevi, Vemlidy, and Viread for the treatment of viral hepatitis. It also offers Yescarta, Tecartus, Trodelvy, and Zydelig 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. Gilead Sciences, Inc. has collaboration agreements with Arcus Biosciences, Inc.; Merck & Co, Inc.; Pionyr Immunotherapeutics Inc.; Tizona Therapeutics, Inc.; Tango Therapeutics, Inc.; Jounce Therapeutics, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Dragonfly Therapeutics, Inc.; Merck & Co, Inc., and Tentarix Biotherapeutics Inc., as well as a partnership with Assembly Biosciences, Inc. to develop next-generation therapeutics for serious viral diseases. The company was incorporated in 1987 and is headquartered in Foster City, California.