GSK PLC Sponsored ADR (GSK) vs Novartis AG (NVS)

GSK PLC Sponsored ADR and Novartis AG are both Drug Manufacturers General companies. Novartis AG is the larger, with a market value of $275.3B against $98.2B — 2.8× the size. GSK PLC Sponsored ADR trades at the lower P/E: 15.4× against 22.6×. GSK PLC Sponsored ADR grew revenue faster over the last twelve months: 8.72% against 2.73%. Novartis AG has the higher net margin (22.5% vs 14.6%) and the higher return on invested capital (13.1% vs 12.6%). Both pay a dividend; GSK PLC Sponsored ADR yields more (3.67% vs 3.15%). Across the 23 metrics below, GSK PLC Sponsored ADR leads on 13 and Novartis AG on 10.

Valuation

Metric GSK NVS Drug Manufacturers General median
P/E 15.44 22.62 24.54
P/S 2.23 5.06 3.39
P/B 4.31 6.84 5.00
Price to free cash flow 13.00 18.91 16.55
EV/EBITDA 9.35 14.47 13.82
EV/Sales 2.69 5.76 4.03
Earnings yield 6.48% 4.42% 2.98%
Free cash flow yield 7.69% 5.29% 4.46%

Profitability

Metric GSK NVS Drug Manufacturers General median
Gross margin 72.75% 74.74% 72.77%
Operating margin 19.55% 30.17% 18.77%
Net margin 14.58% 22.50% 8.27%
Free cash flow margin 17.18% 26.77% 17.18%
Return on equity 30.74% 30.37% 5.87%
Return on assets 8.01% 11.27% 2.57%
Return on invested capital 12.58% 13.14% 6.11%

Growth

Metric GSK NVS Drug Manufacturers General median
Revenue growth (TTM) 8.72% 2.73% 6.66%
EPS growth (last fiscal year) 133.96% 21.81% 21.81%
Revenue growth, 5-year CAGR (0.32%) 2.58% 4.75%
Net income growth, 5-year CAGR 0.42% 11.62% 0.00%

Health

Metric GSK NVS Drug Manufacturers General median
Debt to equity 1.06 1.12 0.63
Current ratio 0.82 0.86 1.32
Net debt to EBITDA 1.39 0.96 1.15

Dividend

Metric GSK NVS Drug Manufacturers General median
Dividend yield 3.67% 3.15% 2.33%
Payout ratio 0.57 0.72 0.59

Size

Metric GSK NVS Drug Manufacturers General median
Market cap 98.21b 275.28b 123.73b

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