BridgeBio Pharma (NASDAQ:BBIO) & Gilead Sciences (NASDAQ:GILD) Financial Contrast

Gilead Sciences (NASDAQ:GILD) and BridgeBio Pharma (NASDAQ:BBIO) are both large-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

83.7% of Gilead Sciences shares are owned by institutional investors. Comparatively, 99.8% of BridgeBio Pharma shares are owned by institutional investors. 0.3% of Gilead Sciences shares are owned by insiders. Comparatively, 14.2% of BridgeBio Pharma shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Gilead Sciences and BridgeBio Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gilead Sciences	-10.64%	-2.11%	-0.75%
BridgeBio Pharma	-97.03%	N/A	-61.19%

Volatility and Risk

Gilead Sciences has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, BridgeBio Pharma has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Gilead Sciences and BridgeBio Pharma, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gilead Sciences	0	5	23	1	2.86
BridgeBio Pharma	1	2	20	0	2.83

Gilead Sciences currently has a consensus price target of $158.78, indicating a potential upside of 4.31%. BridgeBio Pharma has a consensus price target of $102.61, indicating a potential upside of 54.05%. Given BridgeBio Pharma’s higher probable upside, analysts clearly believe BridgeBio Pharma is more favorable than Gilead Sciences.

Earnings and Valuation

This table compares Gilead Sciences and BridgeBio Pharma”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gilead Sciences	$29.44 billion	6.41	$8.51 billion	($2.67)	-57.01
BridgeBio Pharma	$502.08 million	25.94	-$724.93 million	($3.57)	-18.66

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

Summary

Gilead Sciences beats BridgeBio Pharma on 8 of the 15 factors compared between the two stocks.

About Gilead Sciences

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, Sunlencs, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of COVID-19; and Epclusa, Harvoni, Vemlidy, and Viread for the treatment of viral hepatitis. It also offers Yescarta, Tecartus, and Trodelvy products for the treatment of oncology; Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. The company has collaboration agreements with Arcus Biosciences, Inc.; Merck Sharp & Dohme Corp.; Pionyr Immunotherapeutics Inc.; Tizona Therapeutics, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Dragonfly Therapeutics, Inc.; Arcellx, Inc.; Everest Medicines; Merck & Co, Inc.; Tentarix Biotherapeutics Inc.; and Assembly Biosciences, Inc. It also has research collaboration, option, and license agreement with Merus N.V. for the discovery of novel dual tumor-associated antigens (TAA) targeting trispecific antibodies. The company was incorporated in 1987 and is headquartered in Foster City, California.

About BridgeBio Pharma

BridgeBio Pharma, Inc., a commercial-stage biopharmaceutical company, discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases and cancers. Its products in development programs include AG10, a next-generation oral small molecule near-complete TTR stabilizer that is in Phase 3 clinical trial for the treatment of TTR amyloidosis, or transthyretin amyloid cardiomyopathy (ATTR-CM); low-dose infigratinib, an oral FGFR1-3 selective tyrosine kinase inhibitor, which is in Phase 3 double-blinded, placebo-controlled pivotal study for the treatment option for children with achondroplasia; and BBP-631, an AAV5 gene transfer product candidate that is in Phase 1/2 clinical trial for the treatment of congenital adrenal hyperplasia, or CAH, driven by 21-hydroxylase deficiency, or 21OHD. The company also develops Encaleret, a small molecule antagonist of the calcium sensing receptor, or CaSR, which is in phase 3 clinical trial for treating autosomal dominant hypocalcemia type 1, or ADH1; and BBP-418, a glycosylation substrate pro-drug that is in Phase 3 clinical trial for treating limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9). In addition, it engages in developing products for mendelian, oncology, and gene therapy diseases. BridgeBio Pharma, Inc. has license and collaboration agreements with the Leland Stanford Junior University; and Leidos Biomedical Research, Inc. The company was founded in 2015 and is headquartered in Palo Alto, California.