Financial Comparison: Gilead Sciences (GILD) & China Biologic Products (CBPO)

Gilead Sciences (NASDAQ:GILD) and China Biologic Products (NASDAQ:CBPO) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Profitability

This table compares Gilead Sciences and China Biologic Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gilead Sciences 7.12% 39.32% 12.73%
China Biologic Products 15.89% 14.00% 12.16%

Institutional & Insider Ownership

78.2% of Gilead Sciences shares are held by institutional investors. Comparatively, 44.2% of China Biologic Products shares are held by institutional investors. 1.2% of Gilead Sciences shares are held by insiders. Comparatively, 2.7% of China Biologic Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Gilead Sciences and China Biologic Products, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gilead Sciences 0 10 8 1 2.53
China Biologic Products 0 2 1 0 2.33

Gilead Sciences presently has a consensus target price of $87.75, suggesting a potential upside of 21.81%. China Biologic Products has a consensus target price of $101.00, suggesting a potential upside of 56.08%. Given China Biologic Products’ higher possible upside, analysts clearly believe China Biologic Products is more favorable than Gilead Sciences.

Dividends

Gilead Sciences pays an annual dividend of $2.28 per share and has a dividend yield of 3.2%. China Biologic Products 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.

Earnings & Valuation

This table compares Gilead Sciences and China Biologic Products’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gilead Sciences $26.11 billion 3.58 $4.63 billion $8.56 8.42
China Biologic Products $370.41 million 5.79 $67.94 million $4.95 13.07

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

Volatility & Risk

Gilead Sciences has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, China Biologic Products has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Summary

Gilead Sciences beats China Biologic Products on 11 of the 18 factors compared between the two stocks.

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 China Biologic Products

China Biologic Products Holdings, Inc. engages in the research, development, manufacture, and sale of human plasma-based biopharmaceutical products to hospitals and inoculation centers in the People's Republic of China. It offers human albumin for treating shock caused by blood loss trauma or burn; raised intracranial pressure caused by hydrocephalus or trauma; oedema or ascites caused by hepatocirrhosis and nephropathy; and neonatal hyperbilirubinemia, as well as for the prevention and treatment of low-density-lipoproteinemia. The company also provides human immunoglobulin for intravenous injection products for original and secondary immunoglobulin deficiency, and auto-immune deficiency diseases; human hepatitis B immunoglobulin for the prevention of measles and contagious hepatitis; human rabies immunoglobulin primarily for passive immunity from bites or claws by rabies or other infected animals; and human tetanus immunoglobulin for the prevention and therapy of tetanus. In addition, it offers placenta polypeptide for the treatment of cell immunity deficiency diseases, viral infection, and leucopenia, as well as assists in postoperative healing; factor VIII for treating coagulopathies; human fibrinogen; and human prothrombin complex concentrate for treating congenital and acquired clotting factor II, VII, IX, X deficiency, as well as excessive anticoagulant, vitamin K deficiency, etc. Further, the company is developing immune globulin intravenous; human antithrombin III; Caprylate/Chromatography Purified and 20 nm virus filtration; human coagulation factor IX; human cytomegalovirus immunoglobulin; and human fibrin sealant products. The company sells its products directly, as well as through distributors. The company was formerly known as China Biologic Products, Inc. and changed its name to China Biologic Products Holdings, Inc. in July 2017. China Biologic Products Holdings, Inc. is headquartered in Beijing, the People's Republic of China.

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