GlaxoSmithKline PLC (NYSE: GSK) is one of 116 publicly-traded companies in the “Pharmaceuticals” industry, but how does it compare to its peers? We will compare GlaxoSmithKline PLC to similar companies based on the strength of its valuation, institutional ownership, profitability, dividends, earnings, risk and analyst recommendations.

Insider & Institutional Ownership

9.3% of GlaxoSmithKline PLC shares are held by institutional investors. Comparatively, 43.7% of shares of all “Pharmaceuticals” companies are held by institutional investors. 10.0% of GlaxoSmithKline PLC shares are held by company insiders. Comparatively, 11.9% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for GlaxoSmithKline PLC and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GlaxoSmithKline PLC 2 7 5 0 2.21
GlaxoSmithKline PLC Competitors 847 3782 6814 185 2.54

GlaxoSmithKline PLC presently has a consensus price target of $43.50, suggesting a potential upside of 19.41%. As a group, “Pharmaceuticals” companies have a potential upside of 23.41%. Given GlaxoSmithKline PLC’s peers stronger consensus rating and higher possible upside, analysts plainly believe GlaxoSmithKline PLC has less favorable growth aspects than its peers.

Dividends

GlaxoSmithKline PLC pays an annual dividend of $1.98 per share and has a dividend yield of 5.4%. GlaxoSmithKline PLC pays out 162.3% 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 2.5% and pay out 65.6% of their earnings in the form of a dividend.

Risk & Volatility

GlaxoSmithKline PLC has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, GlaxoSmithKline PLC’s peers have a beta of 0.95, indicating that their average stock price is 5% less volatile than the S&P 500.

Earnings and Valuation

This table compares GlaxoSmithKline PLC and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
GlaxoSmithKline PLC $39.16 billion $10.71 billion 29.86
GlaxoSmithKline PLC Competitors $8.08 billion $2.63 billion -0.02

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

Profitability

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

Net Margins Return on Equity Return on Assets
GlaxoSmithKline PLC 7.79% 115.30% 9.69%
GlaxoSmithKline PLC Competitors -2,859.53% -67.82% -9.13%

Summary

GlaxoSmithKline PLC beats its peers on 8 of the 15 factors compared.

GlaxoSmithKline PLC Company Profile

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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