GlaxoSmithKline PLC (NYSE: GSK) is one of 103 publicly-traded companies in the “Pharmaceuticals” industry, but how does it contrast to its rivals? We will compare GlaxoSmithKline PLC to related companies based on the strength of its valuation, institutional ownership, dividends, earnings, analyst recommendations, risk and profitability.

Dividends

GlaxoSmithKline PLC pays an annual dividend of $1.99 per share and has a dividend yield of 5.7%. GlaxoSmithKline PLC pays out 159.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.5% and pay out 72.3% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares GlaxoSmithKline PLC and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
GlaxoSmithKline PLC $37.82 billion $1.24 billion 28.15
GlaxoSmithKline PLC Competitors $8.17 billion $1.09 billion 78.11

GlaxoSmithKline PLC has higher revenue and earnings than its rivals. GlaxoSmithKline PLC is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and price targets for GlaxoSmithKline PLC and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GlaxoSmithKline PLC 2 8 5 0 2.20
GlaxoSmithKline PLC Competitors 842 3721 6606 178 2.54

GlaxoSmithKline PLC presently has a consensus target price of $43.50, suggesting a potential upside of 23.61%. As a group, “Pharmaceuticals” companies have a potential upside of 24.72%. Given GlaxoSmithKline PLC’s rivals stronger consensus rating and higher probable upside, analysts plainly believe GlaxoSmithKline PLC has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

9.3% of GlaxoSmithKline PLC shares are held by institutional investors. Comparatively, 43.3% of shares of all “Pharmaceuticals” companies are held by institutional investors. 10.0% of GlaxoSmithKline PLC shares are held by company insiders. Comparatively, 11.3% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

GlaxoSmithKline PLC has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, GlaxoSmithKline PLC’s rivals have a beta of 39.17, meaning that their average stock price is 3,817% more volatile than the S&P 500.

Profitability

This table compares GlaxoSmithKline PLC and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GlaxoSmithKline PLC 7.79% 115.30% 9.69%
GlaxoSmithKline PLC Competitors -2,433.80% -63.91% -7.63%

Summary

GlaxoSmithKline PLC rivals beat GlaxoSmithKline PLC on 9 of the 15 factors compared.

About GlaxoSmithKline PLC

GlaxoSmithKline plc is a global healthcare company. The Company operates through three segments: Pharmaceuticals, Vaccines and Consumer Healthcare. The Company focuses on its research across six areas: Respiratory diseases, human immunodeficiency virus (HIV)/infectious diseases, Vaccines, Immuno-inflammation, Oncology and Rare diseases. The Company makes a range of prescription medicines, vaccines and consumer healthcare products. The Pharmaceuticals business discovers, develops and commercializes medicines to treat a range of acute and chronic diseases. The Vaccines business provides vaccines for people of all ages from babies and adolescents to adults and older people. The Consumer Healthcare business develops and markets products in Wellness, Oral health, Nutrition and Skin health categories. Its product portfolio includes Adartrel, Bexsero, Daraprim and Quinvaxem. Its brands include Panadol, abreva, polident and physiogel.

Receive News & Stock Ratings for GlaxoSmithKline PLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GlaxoSmithKline PLC and related stocks with our FREE daily email newsletter.