The AstraZeneca (LSE:AZN) share price is down 13% over 12 months. That’s not good. But it’s surpassed by GSK (LSE:GSK), which has experienced a 21% drop. In short, it’s not been a particularly auspicious year for the British pharmaceutical and biotech giants.
But which is the best deal for investors? I’m going to look at four popular metrics to give me a better idea.
1. Price-to-earnings
The price-to-earnings (P/E) ratio shows how much investors are willing to pay for each pound of a company’s earnings. AstraZeneca starts at 23.1 times in 2025 and gradually falls to 16.6 times by 2027. This indicates the market expects solid growth from AstraZeneca.
GSK, on the other hand, has a much lower P/E ratio, starting at 10.2 times in 2025 and dropping to 8.35 times in 2027. This lower ratio suggests that investors see GSK as a more value-oriented stock with more modest growth expectations.
2. Dividends
When it comes to dividends, AstraZeneca offers a yield of just over 2% in 2025, rising slightly to about 2.5% by 2027. The proportion of profits it pays out as dividends decreases from around 52% to 41% over the same period, meaning AstraZeneca is keeping more earnings to reinvest in the business.
Meanwhile, GSK’s dividend yield is significantly higher, hovering between 4.5% and just over 5%, with a payout ratio that stays fairly steady between 42% and 46%. For investors who prioritise income, GSK clearly stands out as the better option, paying a higher return through dividends.
3. Revenue growth
In terms of revenue growth, AstraZeneca’s sales are increasing steadily from roughly $58bn in 2025 to $65bn in 2027. The firm plans to hit $80bn in sales by 2030.
GSK also shows growth, but at a slightly slower pace, with revenues rising from about £32.3bn to £35.7bn in the same period, which translates to roughly 3-5.5% growth each year. This suggests AstraZeneca’s expanding its business a bit faster than GSK, reflecting the P/E data.
4. Net debt
Looking at net debt, which is the company’s total debt minus cash and equivalents, the forecasts suggest that AstraZeneca is aggressively reducing its load. Net debt’s expected to fall from about $19.6bn in 2025 to just $3.4bn by 2027.
GSK’s also cutting its debt but at a slower pace, reducing from around £12.7bn to £6.8bn over the same timeframe. Lower debt generally means less financial risk and more flexibility to invest in growth or return money to shareholders.
A winner?
Summing up, AstraZeneca’s positioned as a growth-focused company with a higher share price relative to earnings, lower dividend yield, faster revenue growth, and a strong commitment to reducing debt quickly.
GSK meanwhile, appeals more to income-seeking investors due to its higher dividend yield and stable payout, alongside steady revenue growth and a more gradual reduction in debt.
Beyond the metrics, both companies are experiencing a little uncertainty due to tariffs and legal battles. Nonetheless, my analysis is fairly inconclusive. They’re both interesting investment opportunities to consider. My own favourite’s probably AstraZeneca due to the strength of its pipeline. I may even buy more soon.
