Gilead Sciences (NASDAQ: GILD) and ADMA Biologics (NASDAQ:ADMA) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Volatility and Risk

Gilead Sciences has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, ADMA Biologics has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500.

Earnings and Valuation

This table compares Gilead Sciences and ADMA Biologics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Gilead Sciences $30.39 billion 3.13 $13.50 billion $8.78 8.29
ADMA Biologics $10.66 million 7.67 -$19.51 million ($0.82) -3.87

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

Profitability

This table compares Gilead Sciences and ADMA Biologics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gilead Sciences 42.22% 57.15% 21.14%
ADMA Biologics -35.00% -76.26% -9.77%

Institutional & Insider Ownership

76.3% of Gilead Sciences shares are owned by institutional investors. Comparatively, 33.2% of ADMA Biologics shares are owned by institutional investors. 1.3% of Gilead Sciences shares are owned by insiders. Comparatively, 60.4% of ADMA Biologics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Gilead Sciences pays an annual dividend of $2.08 per share and has a dividend yield of 2.9%. ADMA Biologics does not pay a dividend. Gilead Sciences pays out 23.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Gilead Sciences and ADMA Biologics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gilead Sciences 0 11 16 0 2.59
ADMA Biologics 0 0 2 0 3.00

Gilead Sciences presently has a consensus target price of $85.17, indicating a potential upside of 16.96%. ADMA Biologics has a consensus target price of $9.00, indicating a potential upside of 183.91%. Given ADMA Biologics’ stronger consensus rating and higher probable upside, analysts clearly believe ADMA Biologics is more favorable than Gilead Sciences.

Summary

Gilead Sciences beats ADMA Biologics on 9 of the 15 factors compared between the two stocks.

About Gilead Sciences

Gilead Sciences, Inc. is a research-based biopharmaceutical company that discovers, develops and commercializes medicines in areas of unmet medical need. The Company’s portfolio of products and pipeline of investigational drugs includes treatments for Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS), liver diseases, cancer, inflammatory and respiratory diseases and cardiovascular conditions. Its products for HIV/AIDS patients include Descovy, Odefsey, Genvoya, Stribild, Complera/Eviplera, Truvada, Emtriva, Tybost and Vitekta. Its products for patients with liver diseases include Vemlidy, Epclusa, Harvoni, Sovaldi, Viread and Hepsera. It offers Zydelig to patients with hematology/oncology diseases. Its products for patients with various cardiovascular diseases include Letairis, Ranexa and Lexiscan. Its products for various inflammation/respiratory diseases include Cayston and Tamiflu. It had operations in more than 30 countries, as of December 31, 2016.

About ADMA Biologics

ADMA Biologics, Inc. is a late-stage biopharmaceutical company that develops, manufactures and intends to market specialty plasma-based biologics for the treatment and prevention of infectious diseases. The Company is engaged in the development and commercialization of human plasma and plasma-derived therapeutics. Its segments include Plasma Collection Centers, which includes its operations in Georgia; Research and Development, which includes its plasma development operations in New Jersey, and Corporate. Its targeted patient populations are immune-compromised individuals suffering from an underlying immune deficiency disorder or may be immune-suppressed for medical reasons. Its product candidates are intended to be used by physician specialists focused on caring for immune-compromised patients at risk of contracting infectious diseases. Its intravenous immunoglobulin product candidate, RI-002, is intended for the treatment of primary immune deficiency disease.

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