Critical Comparison: Gain Therapeutics (NASDAQ:GANX) vs. GSK (NYSE:GSK)

Gain Therapeutics (NASDAQ:GANX) and GSK (NYSE:GSK) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Profitability

This table compares Gain Therapeutics and GSK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gain Therapeutics	N/A	-214.19%	-129.96%
GSK	7.97%	50.62%	11.54%

Earnings & Valuation

This table compares Gain Therapeutics and GSK”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gain Therapeutics	$50,000.00	1,159.06	-$22.27 million	($1.30)	-1.75
GSK	$31.31 billion	2.38	$6.13 billion	$1.54	23.31

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.

Institutional & Insider Ownership

12.0% of Gain Therapeutics shares are held by institutional investors. Comparatively, 15.7% of GSK shares are held by institutional investors. 11.7% of Gain Therapeutics shares are held by insiders. Comparatively, 10.0% of GSK shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Gain Therapeutics and GSK, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gain Therapeutics	0	0	3	0	3.00
GSK	0	5	1	3	2.78

Gain Therapeutics presently has a consensus target price of $7.33, suggesting a potential upside of 223.05%. GSK has a consensus target price of $50.00, suggesting a potential upside of 39.30%. Given Gain Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Gain Therapeutics is more favorable than GSK.

Volatility & Risk

Gain Therapeutics has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, GSK has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Summary

GSK beats Gain Therapeutics on 10 of the 15 factors compared between the two stocks.

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.

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.