Biogen Inc. (BIIB) vs Gilead Sciences, Inc. (GILD)

Biogen Inc. and Gilead Sciences, Inc. are both Drug Manufacturers General companies. Gilead Sciences, Inc. is the larger, with a market value of $183.2B against $33.5B — 5.5× the size. Gilead Sciences, Inc. has negative trailing earnings, so its P/E is not meaningful; Biogen Inc. trades at 40.1×. Gilead Sciences, Inc. grew revenue faster over the last twelve months: 5.52% against 0.31%. Biogen Inc. has the higher net margin (8.32% vs −10.6%) and the higher return on invested capital (3.11% vs −4.48%). Across the 21 metrics below, Biogen Inc. leads on 15 and Gilead Sciences, Inc. on 6.

Valuation

Metric BIIB GILD Drug Manufacturers General median
P/E 40.07 n/m 24.72
P/S 3.35 6.16 3.35
P/B 1.78 15.97 5.00
Price to free cash flow 13.23 14.49 17.68
EV/EBITDA 15.37 804.10 13.91
EV/Sales 3.95 6.92 3.95
Earnings yield 2.50% (1.72%) 2.92%
Free cash flow yield 7.56% 6.90% 4.42%

Profitability

Metric BIIB GILD Drug Manufacturers General median
Gross margin 73.99% 79.59% 72.77%
Operating margin 12.35% (8.20%) 18.90%
Net margin 8.32% (10.64%) 8.27%
Free cash flow margin 25.33% 42.50% 17.25%
Return on equity 4.58% (20.68%) 6.97%
Return on assets 2.76% (6.17%) 2.76%
Return on invested capital 3.11% (4.48%) 6.30%

Growth

Metric BIIB GILD Drug Manufacturers General median
Revenue growth (TTM) 0.31% 5.52% 6.79%
EPS growth (last fiscal year) (21.38%) 1,684.21% —
Revenue growth, 5-year CAGR (5.96%) 3.58% 3.98%
Net income growth, 5-year CAGR (20.22%) 133.35% 0.42%

Health

Metric BIIB GILD Drug Manufacturers General median
Debt to equity 0.39 2.23 0.63
Current ratio 1.87 1.27 1.32
Net debt to EBITDA 0.84 1.35 1.15

Dividend

Metric BIIB GILD Drug Manufacturers General median
Dividend yield — 4.27% 3.57%
Payout ratio 0.00 0.68 0.53

Size

Metric BIIB GILD Drug Manufacturers General median
Market cap 33.54b 183.22b 125.91b

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