Analyzing GSK (NYSE:GSK) and BeOne Medicines (NASDAQ:ONC)

BeOne Medicines (NASDAQ:ONC) and GSK (NYSE:GSK) are both large-cap healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares BeOne Medicines and GSK”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BeOne Medicines	$6.13 billion	6.54	$286.93 million	$5.68	64.26
GSK	$43.07 billion	2.34	$7.54 billion	$3.20	15.55

GSK has higher revenue and earnings than BeOne Medicines. GSK is trading at a lower price-to-earnings ratio than BeOne Medicines, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

BeOne Medicines has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, GSK has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BeOne Medicines and GSK, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BeOne Medicines	0	2	12	3	3.06
GSK	2	7	1	1	2.09

BeOne Medicines presently has a consensus target price of $402.71, indicating a potential upside of 10.33%. GSK has a consensus target price of $56.50, indicating a potential upside of 13.56%. Given GSK’s higher possible upside, analysts clearly believe GSK is more favorable than BeOne Medicines.

Institutional & Insider Ownership

48.5% of BeOne Medicines shares are held by institutional investors. Comparatively, 15.7% of GSK shares are held by institutional investors. 6.2% of BeOne Medicines shares are held by company insiders. Comparatively, 10.0% of GSK shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares BeOne Medicines and GSK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BeOne Medicines	10.70%	14.23%	7.82%
GSK	14.56%	43.23%	11.60%

Summary

BeOne Medicines beats GSK on 8 of the 15 factors compared between the two stocks.

About BeOne Medicines

BeOne Medicines Ltd. is a global oncology company domiciled in Switzerland that is discovering and developing innovative treatments that are more affordable and accessible to cancer patients worldwide. The firm portfolio spanning hematology and solid tumors, BeOne is expediting development of its diverse pipeline of novel therapeutics through its internal capabilities and collaborations. The company was founded by Xiao Dong Wang and John V. Oyler on October 28, 2010 and is headquartered in Basel, Switzerland.

About GSK

GSK plc, together with its subsidiaries, engages in the research, development, and manufacture of vaccines, and specialty and general medicines to prevent and treat disease in the United Kingdom, the United States, and internationally. It operates through two segments, Commercial Operations and Total R&D. The company offers shingles, meningitis, respiratory syncytial virus, flu, polio, influenza, and pandemic vaccines. It also provides medicines for HIV, oncology, respiratory/immunology, and other specialty medicine products, as well as inhaled medicines for asthma and chronic obstructive pulmonary disease, and antibiotics for infections. It has a collaboration agreement with CureVac to develop mRNA-based influenza vaccines, and with Wave Life Sciences and Elsie Biotechnologies, Inc for oligonucleotide platform development. The company was formerly known as GlaxoSmithKline plc and changed its name to GSK plc in May 2022. GSK plc was founded in 1715 and is headquartered in Brentford, the United Kingdom.