GILEAD SCIENCES, INC. vs Novartis AG, two Drug Manufacturers stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Neither pharma prints growth here, but the multiples imply the ranking: Novartis at 21.5 times earnings carries four turns over Gilead's 17.3, the market paying up for the broader pipeline against the deeper franchise concentration. The economics run close and strong at both: operating margins of 32.4% and 37.2% (Gilead ahead), returns on equity of 30% and 39.2% (Gilead ahead, one turn of debt assisting against none). Free-cash yields sit at 5.8% and 6.4%; Gilead pays the listed 2.5% dividend. On every printed line the cheaper stock earns more, which makes the four-turn spread a pure pipeline judgment: the market believes Novartis' next decade more than Gilead's, and the belief costs exactly that much.
Comparison updated 2026-07-10.
| Metric | GILD | NVS |
|---|---|---|
| Price | $127.25 | $155.27 |
| Market cap | $159.6B | $301.1B |
| Sector | Drug Manufacturers | Drug Manufacturers |
| Stage | Mature | Mature |
| Implied growth (priced in) | -0.5% | +8.3% |
| P/E | 17.3 | 21.5 |
| P/B | 6.79 | 6.47 |
| P/S | 5.37 | 5.52 |
| EV/EBITDA | 17.1 | 16.4 |
| Revenue growth | +3.5% | +6.4% |
| Gross margin | — | 78.8% |
| Operating margin | 37.2% | 32.4% |
| Net margin | 31.0% | 25.6% |
| Return on equity | 39.2% | 30.0% |
| Return on assets | 16.4% | 12.6% |
| Return on invested capital | 17.3% | 32.4% |
| FCF yield | 6.4% | 5.8% |
| Dividend yield | 2.5% | — |
| Debt / equity | 1.00 | 0.00 |
| Current ratio | 1.97 | 1.12 |
| Altman Z (solvency) | 7.23 | 3.86 |
| Piotroski F (quality) | 6 / 9 | 8 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.