Critical Analysis: GSK (NYSE:GSK) vs. 60 Degrees Pharmaceuticals (NASDAQ:SXTP)

GSK (NYSE:GSK) and 60 Degrees Pharmaceuticals (NASDAQ:SXTP) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Earnings and Valuation

This table compares GSK and 60 Degrees Pharmaceuticals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GSK	$33.54 billion	3.05	$7.54 billion	$2.88	17.58
60 Degrees Pharmaceuticals	$1.41 million	1.30	-$7.36 million	($4.82)	-0.11

GSK has higher revenue and earnings than 60 Degrees Pharmaceuticals. 60 Degrees Pharmaceuticals is trading at a lower price-to-earnings ratio than GSK, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for GSK and 60 Degrees Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GSK	3	13	3	0	2.00
60 Degrees Pharmaceuticals	1	2	1	0	2.00

GSK currently has a consensus target price of $56.30, indicating a potential upside of 11.19%. 60 Degrees Pharmaceuticals has a consensus target price of $13.85, indicating a potential upside of 2,563.46%. Given 60 Degrees Pharmaceuticals’ higher possible upside, analysts plainly believe 60 Degrees Pharmaceuticals is more favorable than GSK.

Insider and Institutional Ownership

15.7% of GSK shares are held by institutional investors. Comparatively, 8.0% of 60 Degrees Pharmaceuticals shares are held by institutional investors. 10.0% of GSK shares are held by company insiders. Comparatively, 1.7% of 60 Degrees Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

GSK has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, 60 Degrees Pharmaceuticals has a beta of 2.47, suggesting that its stock price is 147% more volatile than the S&P 500.

Profitability

This table compares GSK and 60 Degrees Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GSK	13.00%	41.41%	11.09%
60 Degrees Pharmaceuticals	-650.21%	N/A	-136.81%

Summary

GSK beats 60 Degrees Pharmaceuticals on 11 of the 13 factors compared between the two stocks.

About GSK

GSK plc is a global biopharmaceutical company headquartered in the United Kingdom. It researches, develops and manufactures medicines and vaccines, with a focus on areas including infectious diseases, HIV, respiratory and immune conditions, and cancer. Its products include vaccines such as Shingrix, which helps prevent shingles, and Arexvy, for respiratory syncytial virus (RSV). GSK also makes specialty medicines, including treatments for HIV and respiratory diseases, and continues to develop new medicines and vaccines through its research programs.

About 60 Degrees Pharmaceuticals

60 Degrees Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on developing and commercializing medicines for tropical and infectious diseases. The company’s work centers on treatments and preventive therapies for conditions that affect travelers, military personnel and populations in regions where infectious diseases are prevalent. Its lead product is Arakoda (tafenoquine), an oral prescription medicine approved by the U.S. Food and Drug Administration in 2018 for the prevention of malaria in adults.