Comparing GSK (NYSE:GSK) and Evolus (NASDAQ:EOLS)

Evolus (NASDAQ:EOLS) and GSK (NYSE:GSK) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Evolus	-10.85%	N/A	-13.00%
GSK	14.56%	43.23%	11.60%

Earnings and Valuation

This table compares Evolus and GSK”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolus	$316.49 million	1.64	-$51.64 million	($0.52)	-15.08
GSK	$33.20 billion	2.93	$7.54 billion	$3.20	15.04

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

Insider and Institutional Ownership

90.7% of Evolus shares are held by institutional investors. Comparatively, 15.7% of GSK shares are held by institutional investors. 5.0% of Evolus shares are held by insiders. Comparatively, 10.0% of GSK shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Evolus and GSK, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolus	1	1	4	0	2.50
GSK	2	7	0	1	2.00

Evolus presently has a consensus price target of $14.50, indicating a potential upside of 84.95%. GSK has a consensus price target of $53.00, indicating a potential upside of 10.11%. Given Evolus’ stronger consensus rating and higher probable upside, research analysts plainly believe Evolus is more favorable than GSK.

Risk and Volatility

Evolus has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, GSK has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.

Summary

GSK beats Evolus on 10 of the 15 factors compared between the two stocks.

About Evolus

Evolus, Inc., a performance beauty company, focuses on delivering products in the cash-pay aesthetic market in the United States, Canada, and Europe. The company offers Jeuveau, a proprietary 900 kilodalton purified botulinum toxin type A formulation for the temporary improvement in the appearance of moderate to severe glabellar lines in adults. It also provides dermal filler products under the Estyme and Evolysse names. The company was incorporated in 2012 and is headquartered in Newport Beach, California.

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.