Analyzing Gilead Sciences (NASDAQ:GILD) & Kymera Therapeutics (NASDAQ:KYMR)

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

Insider & Institutional Ownership

83.7% of Gilead Sciences shares are held by institutional investors. 0.3% of Gilead Sciences shares are held by company insiders. Comparatively, 15.8% of Kymera Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Gilead Sciences and Kymera Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gilead Sciences	1.76%	24.34%	8.36%
Kymera Therapeutics	-194.67%	-31.92%	-23.98%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Gilead Sciences and Kymera Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gilead Sciences	0	11	6	0	2.35
Kymera Therapeutics	0	6	6	0	2.50

Gilead Sciences currently has a consensus target price of $83.69, suggesting a potential upside of 32.52%. Kymera Therapeutics has a consensus target price of $42.70, suggesting a potential upside of 36.86%. Given Kymera Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Kymera Therapeutics is more favorable than Gilead Sciences.

Risk and Volatility

Gilead Sciences has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, Kymera Therapeutics has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500.

Valuation & Earnings

This table compares Gilead Sciences and Kymera Therapeutics’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gilead Sciences	$27.12 billion	2.90	$5.67 billion	$0.36	175.42
Kymera Therapeutics	$79.41 million	24.11	-$146.96 million	($2.51)	-12.43

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

Summary

Gilead Sciences beats Kymera Therapeutics on 8 of the 13 factors compared between the two stocks.

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.

About Kymera Therapeutics

Kymera Therapeutics, Inc., a biopharmaceutical company, focuses on discovering and developing novel small molecule therapeutics that selectively degrade disease-causing proteins by harnessing the body's own natural protein degradation system. It engages in developing IRAK4 program, which is in Phase II clinical trial for the treatment of immunology-inflammation diseases, including hidradenitis suppurativa, atopic dermatitis; STAT3 program for the treatment of hematologic malignancies and solid tumors, as well as autoimmune diseases and fibrosis; and MDM2 program to treat hematological malignancies and solid tumors. The company develops STAT6, a Type 2 inflammation in allergic diseases; and TYK2, a treatment for inflammatory bowel disease, psoriasis, psoriatic arthritis, and lupus. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.