Legend Biotech (NASDAQ:LEGN – Get Free Report) and Gilead Sciences (NASDAQ:GILD – Get Free Report) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.
Profitability
This table compares Legend Biotech and Gilead Sciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Legend Biotech | -7.21% | -8.71% | -5.40% |
| Gilead Sciences | -12.47% | -1.85% | -0.61% |
Risk & Volatility
Legend Biotech has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Gilead Sciences has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Legend Biotech and Gilead Sciences, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Legend Biotech | 1 | 5 | 9 | 0 | 2.53 |
| Gilead Sciences | 0 | 6 | 23 | 0 | 2.79 |
Legend Biotech currently has a consensus price target of $54.69, indicating a potential upside of 133.73%. Gilead Sciences has a consensus price target of $170.15, indicating a potential upside of 1.95%. Given Legend Biotech’s higher probable upside, equities analysts clearly believe Legend Biotech is more favorable than Gilead Sciences.
Earnings & Valuation
This table compares Legend Biotech and Gilead Sciences”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Legend Biotech | $1.03 billion | 4.41 | -$296.80 million | ($0.25) | -93.60 |
| Gilead Sciences | $29.44 billion | 7.03 | $8.51 billion | ($3.16) | -52.81 |
Gilead Sciences has higher revenue and earnings than Legend Biotech. Legend Biotech is trading at a lower price-to-earnings ratio than Gilead Sciences, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
70.9% of Legend Biotech shares are owned by institutional investors. Comparatively, 83.7% of Gilead Sciences shares are owned by institutional investors. 0.0% of Legend Biotech shares are owned by insiders. Comparatively, 0.3% of Gilead Sciences shares are owned by 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.
Summary
Gilead Sciences beats Legend Biotech on 10 of the 14 factors compared between the two stocks.
About Legend Biotech
Legend Biotech Corporation, a clinical-stage biopharmaceutical company, through its subsidiaries, engages in the discovery, development, manufacturing, and commercialization of novel cell therapies for oncology and other indications in the United States, China, and internationally. Its lead product candidate, LCAR- B38M, is a chimeric antigen receptor for the treatment of multiple myeloma (MM). The company also has a portfolio of earlier-stage autologous CAR-T product candidates targeting various cancers, including Non-Hodgkins Lymphoma, acute lymphoblastic leukemia, gastric cancer, esophageal cancer, pancreatic cancer, colorectal cancer, hepatocellular carcinoma, small cell lung cancer, and non-small cell lung cancer. It has collaboration and license agreement with Janssen Biotech, Inc. for the development and commercialization of ciltacabtagene autoleucel. The company was founded in 2014 and is based in Somerset, New Jersey. Legend Biotech Corporation is a subsidiary of Genscript Biotech Corporation.
About Gilead Sciences
Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, Sunlencs, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of COVID-19; and Epclusa, Harvoni, Vemlidy, and Viread for the treatment of viral hepatitis. It also offers Yescarta, Tecartus, and Trodelvy products for the treatment of oncology; Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. The company has collaboration agreements with Arcus Biosciences, Inc.; Merck Sharp & Dohme Corp.; Pionyr Immunotherapeutics Inc.; Tizona Therapeutics, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Dragonfly Therapeutics, Inc.; Arcellx, Inc.; Everest Medicines; Merck & Co, Inc.; Tentarix Biotherapeutics Inc.; and Assembly Biosciences, Inc. It also has research collaboration, option, and license agreement with Merus N.V. for the discovery of novel dual tumor-associated antigens (TAA) targeting trispecific antibodies. The company was incorporated in 1987 and is headquartered in Foster City, California.
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