Gilead Sciences, Inc. (GILD) vs Merck & Co., Inc. (MRK)

Gilead Sciences, Inc. and Merck & Co., Inc. are both Drug Manufacturers General companies. Merck & Co., Inc. is the larger, with a market value of $362.5B against $207.8B — 1.7× the size. Gilead Sciences, Inc. has negative trailing earnings, so its P/E is not meaningful; Merck & Co., Inc. trades at 118×. Gilead Sciences, Inc. grew revenue faster over the last twelve months: 6.54% against 4.89%. Merck & Co., Inc. has the higher net margin (3.64% vs −12.5%) and the higher return on invested capital (0.00% vs −4.51%). Both pay a dividend; Merck & Co., Inc. yields more (2.31% vs 1.94%). Across the 22 metrics below, Merck & Co., Inc. leads on 14 and Gilead Sciences, Inc. on 8.

Valuation

Metric GILD MRK Drug Manufacturers General median
P/E n/m 117.54 26.57
P/S 6.71 5.39 3.49
P/B 16.06 8.64 5.20
Price to free cash flow 15.09 22.59 21.34
EV/EBITDA 505.05 29.70 14.80
EV/Sales 7.35 6.04 4.09
Earnings yield (1.85%) 0.85% 2.40%
Free cash flow yield 6.63% 4.43% 4.43%

Profitability

Metric GILD MRK Drug Manufacturers General median
Gross margin 79.93% 71.75% 73.01%
Operating margin (7.63%) 9.20% 18.34%
Net margin (12.47%) 3.64% 7.31%
Free cash flow margin 44.47% 0.00% 18.52%
Return on equity (22.45%) 0.00% 5.80%
Return on assets (7.03%) 0.00% 2.28%
Return on invested capital (4.51%) 0.00% 6.26%

Growth

Metric GILD MRK Drug Manufacturers General median
Revenue growth (TTM) 6.54% 4.89% 6.72%
EPS growth (last fiscal year) 1,684.21% 8.01% 21.81%
Revenue growth, 5-year CAGR 3.58% 9.38% 4.75%
Net income growth, 5-year CAGR 133.35% 20.90% 0.00%

Health

Metric GILD MRK Drug Manufacturers General median
Debt to equity 2.02 1.22 0.63
Current ratio 1.38 1.32 1.39
Net debt to EBITDA 1.35 1.15 1.15

Dividend

Metric GILD MRK Drug Manufacturers General median
Dividend yield 1.94% 2.31% 2.31%
Payout ratio — 3.49 0.59

Size

Metric GILD MRK Drug Manufacturers General median
Market cap 207.84b 362.53b 131.21b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack