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

Institutional and Insider Ownership

33.2% of ADMA Biologics shares are held by institutional investors. Comparatively, 76.3% of Gilead Sciences shares are held by institutional investors. 60.4% of ADMA Biologics shares are held by insiders. Comparatively, 1.3% of Gilead Sciences shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for ADMA Biologics and Gilead Sciences, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ADMA Biologics 0 0 2 0 3.00
Gilead Sciences 0 11 16 0 2.59

ADMA Biologics currently has a consensus price target of $9.00, suggesting a potential upside of 205.08%. Gilead Sciences has a consensus price target of $85.17, suggesting a potential upside of 17.79%. Given ADMA Biologics’ stronger consensus rating and higher possible upside, analysts plainly believe ADMA Biologics is more favorable than Gilead Sciences.

Volatility & Risk

ADMA Biologics has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Gilead Sciences has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Dividends

Gilead Sciences pays an annual dividend of $2.08 per share and has a dividend yield of 2.9%. ADMA Biologics does not pay a dividend. Gilead Sciences pays out 23.7% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares ADMA Biologics and Gilead Sciences’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
ADMA Biologics $10.66 million 7.14 -$19.51 million ($2.00) -1.48
Gilead Sciences $30.39 billion 3.11 $13.50 billion $8.79 8.23

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

Profitability

This table compares ADMA Biologics and Gilead Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ADMA Biologics -35.00% -76.26% -9.77%
Gilead Sciences 42.22% 57.15% 21.14%

Summary

Gilead Sciences beats ADMA Biologics on 9 of the 15 factors compared between the two stocks.

About ADMA Biologics

ADMA Biologics, Inc. is a late-stage biopharmaceutical company that develops, manufactures and intends to market specialty plasma-based biologics for the treatment and prevention of infectious diseases. The Company is engaged in the development and commercialization of human plasma and plasma-derived therapeutics. Its segments include Plasma Collection Centers, which includes its operations in Georgia; Research and Development, which includes its plasma development operations in New Jersey, and Corporate. Its targeted patient populations are immune-compromised individuals suffering from an underlying immune deficiency disorder or may be immune-suppressed for medical reasons. Its product candidates are intended to be used by physician specialists focused on caring for immune-compromised patients at risk of contracting infectious diseases. Its intravenous immunoglobulin product candidate, RI-002, is intended for the treatment of primary immune deficiency disease.

About Gilead Sciences

Gilead Sciences, Inc. is a research-based biopharmaceutical company that discovers, develops and commercializes medicines in areas of unmet medical need. The Company’s portfolio of products and pipeline of investigational drugs includes treatments for Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS), liver diseases, cancer, inflammatory and respiratory diseases and cardiovascular conditions. Its products for HIV/AIDS patients include Descovy, Odefsey, Genvoya, Stribild, Complera/Eviplera, Truvada, Emtriva, Tybost and Vitekta. Its products for patients with liver diseases include Vemlidy, Epclusa, Harvoni, Sovaldi, Viread and Hepsera. It offers Zydelig to patients with hematology/oncology diseases. Its products for patients with various cardiovascular diseases include Letairis, Ranexa and Lexiscan. Its products for various inflammation/respiratory diseases include Cayston and Tamiflu. It had operations in more than 30 countries, as of December 31, 2016.

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