Head-To-Head Analysis: Gilead Sciences (GILD) vs. Halozyme Therapeutics (HALO)

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

Dividends

Gilead Sciences pays an annual dividend of $2.28 per share and has a dividend yield of 3.0%. Halozyme Therapeutics does not pay a dividend. Gilead Sciences pays out 26.6% of its earnings in the form of a dividend. Gilead Sciences has raised its dividend for 2 consecutive years.

Institutional and Insider Ownership

77.6% of Gilead Sciences shares are held by institutional investors. Comparatively, 84.4% of Halozyme Therapeutics shares are held by institutional investors. 1.3% of Gilead Sciences shares are held by company insiders. Comparatively, 16.8% of Halozyme Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Gilead Sciences has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Halozyme Therapeutics has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500.

Profitability

This table compares Gilead Sciences and Halozyme Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gilead Sciences 9.52% 41.57% 13.79%
Halozyme Therapeutics 23.88% 38.10% 16.52%

Earnings & Valuation

This table compares Gilead Sciences and Halozyme Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gilead Sciences $26.11 billion 3.81 $4.63 billion $8.56 8.96
Halozyme Therapeutics $316.61 million 7.74 $62.97 million $0.45 37.76

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

Analyst Recommendations

This is a breakdown of recent ratings for Gilead Sciences and Halozyme Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gilead Sciences 0 10 13 1 2.63
Halozyme Therapeutics 1 2 4 0 2.43

Gilead Sciences currently has a consensus target price of $87.94, indicating a potential upside of 14.61%. Halozyme Therapeutics has a consensus target price of $21.86, indicating a potential upside of 28.65%. Given Halozyme Therapeutics’ higher probable upside, analysts plainly believe Halozyme Therapeutics is more favorable than Gilead Sciences.

About Gilead Sciences

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes therapeutics in the areas of unmet medical needs in the United States, Europe, and internationally. The company's products include Biktarvy, Descovy, Odefsey, Genvoya, Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, and Tybost for the treatment of human immunodeficiency virus (HIV) infection in adults; and Vosevi, Vemlidy, Epclusa, Harvoni, Sovaldi, Viread, and Hepsera products for treating liver diseases. It also provides Yescarta, a chimeric antigen receptor T cell therapy for adult patients with relapsed or refractory large B-cell lymphoma; Zydelig, a PI3K delta inhibitor for certain blood cancers; Letairis, an oral formulation of an endothelin receptor antagonist for pulmonary arterial hypertension; Ranexa, a tablet to treat chronic angina; and Lexiscan, an injection for use as a pharmacologic stress agent in radionuclide myocardial perfusion imaging. In addition, the company offers Cayston, an inhaled antibiotic for the treatment of respiratory systems in cystic fibrosis patients; Tamiflu, an oral antiviral capsule for the treatment and prevention of influenza A and B; AmBisome, an antifungal agent to treat serious invasive fungal infections; and Macugen, an anti-angiogenic oligonucleotide to treat neovascular age-related macular degeneration. Further, it has product candidates in various stages of development for the treatment of HIV/AIDS and liver diseases, hematology/oncology, inflammation/respiratory diseases, and others. The company markets its products through its commercial teams; and in conjunction with third-party distributors and corporate partners. Gilead Sciences, Inc. has collaboration agreements with Bristol-Myers Squibb Company, Janssen Sciences Ireland UC, Japan Tobacco Inc., and Galapagos NV. The company was founded in 1987 and is headquartered in Foster City, California.

About Halozyme Therapeutics

Halozyme Therapeutics, Inc., a biotechnology company, researches, develops, and commercializes human enzymes and other drug candidates in the United States, Switzerland, and internationally. The company's human enzymes are used to facilitate the delivery of injected drugs and fluids, enhancing the efficacy and the convenience of other drugs or can be used to alter tissue structures for clinical benefit. Its products are based on the Enhanze technology, a patented recombinant human hyaluronidase enzyme (rHuPH20) that enables the subcutaneous delivery of injectable biologics, such as monoclonal antibodies and other therapeutic molecules, as well as small molecules and fluids. The company's pipeline include Hylenex recombinant, a formulation of rHuPH20 to facilitate subcutaneous fluid administration for achieving hydration; to enhance the dispersion and absorption of other injected drugs; in subcutaneous urography; and to enhance resorption of radiopaque agents. It also develops PEGylated recombinant human hyaluronidase for the treatment of pancreatic ductal adenocarcinoma, non-small cell lung cancer, gastric cancer, metastatic breast cancer, and cholangiocarcinoma and gall bladder cancer. In addition, the company develops PEGylated adenosine deaminase 2, an immune checkpoint inhibitor that targets adenosine. It has collaborations with F. Hoffmann-La Roche, Ltd.; Hoffmann-La Roche, Inc.; Baxalta US Inc.; Baxalta GmbH; Pfizer Inc.; Janssen Biotech, Inc.; AbbVie, Inc.; Eli Lilly and Company; Bristol-Myers Squibb Company; and Alexion Pharma Holding. Halozyme Therapeutics, Inc. was founded in 1998 and is headquartered in San Diego, California.

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