Bristol Myers Squibb ((BMY Quick QuoteBMY - Free Report) ) and GSK PLC ((GSK Quick QuoteGSK - Free Report) ) are among the largest global biopharma companies with broad and diverse portfolios.

Bristol Myers is focused on discovering, developing and delivering transformational drugs for oncology, hematology, immunology, cardiovascular, neuroscience and other diseases.

GSK boasts one of the most diverse portfolios in the pharma/biotech industry with a strong presence in the HIV, oncology and respiratory disease markets, along with a robust portfolio of vaccines.

Both biopharma companies have established strong footholds in their respective target markets, delivering consistent returns to shareholders. In such a scenario, choosing one stock over another can be a complex affair. Let us delve into their fundamentals, potential growth prospects, challenges and valuation levels to make a prudent choice.

The Case for BMY

BMY’s Growth Portfolio, comprising drugs like Opdivo, Reblozyl, Breyanzi, Camzyos and Opdualag, has stabilized its revenue base amid generic competition for its legacy drugs.

Opdivo sales in the United States are being driven by a strong launch in MSI-high colorectal cancer and continued growth in first-line non-small cell lung cancer, while sales outside the country are being driven by volume growth.

The FDA had earlier granted approval to Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use. The initial uptake has been strong and the launch is going well in the United States across all indicated tumor types.

Thalassemia drug Reblozyl has put up a stellar performance since its approval and the drug is expected to contribute significantly in the coming decade. Strong momentum in cardiovascular drug Camzyos should further drive growth. Breyanzi sales have been strong as well.

The company has made strategic acquisitions to broaden its portfolio and drive top-line growth. The FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia in adults, was approved under the brand name Cobenfy. The approval of Cobenfy for schizophrenia broadens BMY’s portfolio and validates the acquisition of Karuna Therapeutics.

While the newer drugs boost sales, generic competition for legacy drugs, which account for the majority of total revenues, is a significant headwind. Legacy Portfolio sales continue to decline due to continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane, as well as the U.S. Medicare Part D redesign effect.

The recent collaboration agreement with BioNTech has strengthened BMY’s pipeline. Both companies have entered into an agreement for the global co-development and co-commercialization of BioNTech’s investigational bispecific antibody BNT327 across numerous solid tumor types.

The Case for GSK

Strong sales growth in GSK’s Specialty Medicines unit (HIV, Oncology, Immunology/Respiratory, and Other), fueled by successful new launches in oncology and long-acting HIV medicines, is driving top-line growth.

Top drugs like Nucala and Dovato continue to be key growth drivers in this segment. New long-acting HIV medicine Cabenuva, along with oncology drugs Jemperli and Ojjaara, has boosted the top line, driven by strong patient demand.

Label expansion of key drugs like Nucala (for COPD) and approval of new drugs such as Ojjaara for myelofibrosis with anemia, Blujepa/gepotidacin for treating uncomplicated urinary tract infection and Apretude, a long-acting injectable form of cabotegravir drug for the prevention of HIV infection, should propel growth.

While the Vaccines portfolio is also diversified, this franchise is under pressure due to lower sales of some products like the RSV vaccine, Arexvy. Nonetheless, approval of new products like Penmenvy, GSK’s pentavalent MenABCWY meningococcal vaccine should help revive growth.

While GSK is working to further expand the label of drugs like Nucala and Blenrep, it also has a deep pipeline. Promising candidates in late-stage development include depemokimab (chronic rhinosinusitis with nasal polyps or CRSwNP and asthma with type II inflammation – under review in EU and United States), linerixibat (cholestatic pruritus in primary biliary cholangitis), camlipixant (refractory chronic cough), tebipenem pivoxil (complicated urinary tract infection) and latozinemab (dementia), among others.

A Look at Estimates: BMY vs GSK

The Zacks Consensus Estimate for BMY’s 2025 sales implies a year-over-year decrease of 2.37%, while that for earnings per share (EPS) suggests an increase of 465.22%. The extraordinary EPS growth rate can be attributed to an extremely low EPS figure in 2024 due to acquisition expenses.

While EPS estimates for 2025 have moved down to $6.50 in the past 60 days, the same for 2026 has inched up to $6.07.

BMY’s Estimate Movement

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for GSK's 2025 sales implies a year-over-year increase of 5.96% and that for EPS suggests an improvement of 7.16%. EPS estimates for 2025 and 2026 have moved south in the past 60 days.

GSK’s Estimate Movement

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Price Performance and Valuation of BMY and GSK

From a price-performance perspective, GSK has fetched better returns than BMY so far this year. Shares of GSK have gained 18.5%, while those of BMY have lost 14.3%. The large-cap pharma industry has lost 1.6% in the said period.

Image Source: Zacks Investment Research

From a valuation standpoint, we use the P/E ratio of the large-cap pharma industry to compare these companies. Going by the same, GSK is slightly more expensive than BMY. GSK’s shares currently trade at 8.74X forward earnings, higher than 7.79X for BMY. The large-cap pharma industry currently trades at 14.77X forward earnings.

Both GSK and BMY have an attractive dividend yield. This is a strong positive for investors. However, BMY's dividend yield of 5.14% is higher than GSK’s 4.2%.

Image Source: Zacks Investment Research

Which Stock Is a Better Pick for Now?

Large pharma/biotech companies are generally considered safe havens for investors interested in this sector.

However, with both BMY and GSK stocks currently carrying a Zacks Rank #3 (Hold), choosing one over the other could be tricky. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BMY’s efforts to revive the top line in the face of generic challenges for key drugs are commendable. Approval of new drugs and label expansion of key drugs should generate incremental revenues for the company. However, we believe there is still time before the efforts reap a harvest for the company.

GSK’s diversified revenue base with a broad global footprint has enabled it to maintain top-line momentum. The company’s strong HIV portfolio and approval of newer treatments should propel growth. Label expansion of key drugs like Nucala and approval of new drugs should generate incremental sales growth. However, the Vaccines portfolio is under pressure.

We believe GSK is a better pick at present, primarily due to the diversity and strength of its portfolio and better returns so far in the year.