GlaxoSmithKline PLC (NYSE: GSK) is one of 114 public companies in the “Pharmaceuticals” industry, but how does it compare to its competitors? We will compare GlaxoSmithKline PLC to similar companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Dividends

GlaxoSmithKline PLC pays an annual dividend of $1.98 per share and has a dividend yield of 4.8%. GlaxoSmithKline PLC pays out 198.0% 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 2.4% and pay out 70.7% of their earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
GlaxoSmithKline PLC 6.48% 114.93% 9.25%
GlaxoSmithKline PLC Competitors -2,920.14% -57.23% -9.08%

Valuation and Earnings

This table compares GlaxoSmithKline PLC and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
GlaxoSmithKline PLC $39.37 billion $10.76 billion 40.86
GlaxoSmithKline PLC Competitors $8.11 billion $2.65 billion 0.29

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

Insider and Institutional Ownership

9.3% of GlaxoSmithKline PLC shares are held by institutional investors. Comparatively, 43.0% of shares of all “Pharmaceuticals” companies are held by institutional investors. 10.0% of GlaxoSmithKline PLC shares are held by company insiders. Comparatively, 12.0% of shares of all “Pharmaceuticals” companies are held by company 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.

Risk & Volatility

GlaxoSmithKline PLC has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, GlaxoSmithKline PLC’s competitors have a beta of 0.88, indicating that their average share price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for GlaxoSmithKline PLC and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GlaxoSmithKline PLC 2 6 7 0 2.33
GlaxoSmithKline PLC Competitors 807 3579 6176 156 2.53

GlaxoSmithKline PLC presently has a consensus price target of $43.50, suggesting a potential upside of 6.46%. As a group, “Pharmaceuticals” companies have a potential upside of 23.48%. Given GlaxoSmithKline PLC’s competitors stronger consensus rating and higher possible upside, analysts plainly believe GlaxoSmithKline PLC has less favorable growth aspects than its competitors.

Summary

GlaxoSmithKline PLC beats its competitors on 8 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.

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