GSK (NYSE:GSK – Get Free Report) and Gain Therapeutics (NASDAQ:GANX – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Risk & Volatility
GSK has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Gain Therapeutics has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.
Insider and Institutional Ownership
15.7% of GSK shares are held by institutional investors. Comparatively, 12.0% of Gain Therapeutics shares are held by institutional investors. 10.0% of GSK shares are held by company insiders. Comparatively, 11.7% of Gain Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GSK | $31.31 billion | 2.40 | $6.13 billion | $1.54 | 23.56 |
| Gain Therapeutics | $50,000.00 | 1,128.43 | -$22.27 million | ($1.30) | -1.70 |
GSK has higher revenue and earnings than Gain Therapeutics. Gain Therapeutics is trading at a lower price-to-earnings ratio than GSK, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares GSK and Gain Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GSK | 7.97% | 50.62% | 11.54% |
| Gain Therapeutics | N/A | -214.19% | -129.96% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for GSK and Gain Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GSK | 0 | 5 | 1 | 3 | 2.78 |
| Gain Therapeutics | 0 | 0 | 3 | 0 | 3.00 |
GSK presently has a consensus price target of $50.00, indicating a potential upside of 37.78%. Gain Therapeutics has a consensus price target of $7.33, indicating a potential upside of 231.83%. Given Gain Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Gain Therapeutics is more favorable than GSK.
Summary
GSK beats Gain Therapeutics on 10 of the 15 factors compared between the two stocks.
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.
About Gain Therapeutics
Gain Therapeutics, Inc., a biotechnology company, develops novel small molecule therapeutics to treat diseases across various therapeutic areas. Its drug discovery platform Magellan discovers novel allosteric binding sites in a disease; identifies proprietary small molecules that bind these sites to modulate protein function; and treats the underlying cause of the disease. The company's lead drug candidate, GT-02287 for the treatment of GBA1 Parkinson's disease is being evaluated in a Phase I clinical trials. It also has various small molecule drug candidates, which are in the discovery, research, and preclinical stages for the treatment of Dementia with Lewy Bodies, Alzhiemer's Disease, Gaucher, GM1 Gangliosidosis, Krabbe Disease, Alpha1-Antitrypsun deficiency, and solid tumors. Gain Therapeutics, Inc. was founded in 2017 and is headquartered in Bethesda, Maryland.
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