Sifting through countless of stocks in the Pharmaceuticals industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in GSK plc or Royalty Pharma plc because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how GSK plc and Royalty Pharma plc compare based on key financial metrics to determine which better meets your investment needs.

About GSK plc and Royalty Pharma plc

GSK plc, together with its subsidiaries, engages in the research, development, and manufacture of vaccines, specialty medicines, and general medicines to prevent and treat disease in the United Kingdom, the United States, and internationally. It operates through Commercial Operations and Total R&D segments. The company offers specialty medicines that include oncology, respiratory/immunology, inflammation, and inhaled medicines for HIV, respiratory eosinophildriven diseases, lupus and lupus nephritis, ovarian cancer, and endometrial cancer. It also provides vaccines for Shingles, Meningitis, RSV, Seasonal Influenza, Hepatitis, Diphtheria, Tetanus, Acellular Pertussis, Rotavirus, Pertussis, Polio, Haemophilus, Invasive Diseases, Pneumonia, Acute Otitis Media, Measles, Mumps, Rubella and Chickenpox, and Human Papilloma Virus. Additionally, the company offers general medicines for asthma, COPD, bacterial infection, benign prostatic hyperplasia, allergic rhinitis, and inflammatory skin conditions. It also focuses on the discovery, development, and commercialization of oral small molecule therapies for patients with unmet needs in oncology and inflammatory diseases. It has a collaboration agreement with CureVac to develop mRNA vaccines for infectious diseases; and strategic research collaboration with Engitix Ltd. to identify and validate novel therapeutic targets driving liver fibrosis regression. The company has a strategic alliance with AN2 Therapeutics, Inc. for the development of new therapies for TB. GSK plc was formerly known as GlaxoSmithKline plc and changed its name to GSK plc in May 2022. The company was founded in 1715 and is headquartered in London, United Kingdom.

Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry in the United States. Its portfolio consists of royalties on approximately 35 marketed therapies and 20 development-stage product candidates that address various therapeutic areas, such as rare disease, oncology, neuroscience, infectious disease, hematology, and diabetes. The company has research and development funding collaboration to advance the development of JNJ-4804, an investigational medicine for autoimmune diseases. The company was founded in 1996 and is based in New York, New York.

Latest Pharmaceuticals and GSK plc, Royalty Pharma plc Stock News

As of September 2, 2026, GSK plc had a $100.7 billion market capitalization, compared to the Pharmaceuticals median of $674.0 million. GSK plc’s stock is up 2.8% in 2026, up 0.3% in the previous five trading days and up 29.47% in the past year.

Currently, GSK plc’s price-earnings ratio is 32.3. GSK plc’s trailing 12-month revenue is $44.1 billion with a 14.5% net profit margin. Year-over-year quarterly sales growth most recently was 2.0%. Analysts expect adjusted earnings to reach $4.794 per share for the current fiscal year. GSK plc currently has a 3.6% dividend yield.

As of September 2, 2026, Royalty Pharma plc had a $28.1 billion market cap, putting it in the 89th percentile of all stocks. Royalty Pharma plc’s stock is up 62.7% in 2026, up 1.5% in the previous five trading days and up 74.48% in the past year.

Currently, Royalty Pharma plc’s price-earnings ratio is 33.9. Royalty Pharma plc’s trailing 12-month revenue is $2.5 billion with a 32.0% net profit margin. Year-over-year quarterly sales growth most recently was 16.5%. Analysts expect adjusted earnings to reach $5.330 per share for the current fiscal year. Royalty Pharma plc currently has a 1.5% dividend yield.

How We Compare GSK plc and Royalty Pharma plc Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at GSK plc and Royalty Pharma plc’s stock grades to see how they measure up against one another.

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GSK plc and Royalty Pharma plc’s Quality Grades

Company	Ticker	Quality
GSK plc	GSK	A
Royalty Pharma plc	RPRX	C

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

GSK plc has a Quality Score of 98, which is Very Strong. Royalty Pharma plc has a Quality Score of 53, which is Average.

The Quality Grade Winner: GSK plc

As you can clearly see from the Quality Grade breakdown above, GSK plc has a better overall quality grade than Royalty Pharma plc. For investors who are looking for companies with higher quality than others in the same industry, GSK plc could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

GSK plc and Royalty Pharma plc’s Momentum Grades

Company	Ticker	Momentum
GSK plc	GSK	C
Royalty Pharma plc	RPRX	A

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

GSK plc has a Momentum Score of 58, which is Average. Royalty Pharma plc has a Momentum Score of 82, which is Very Strong.

The Momentum Grade Winner: Royalty Pharma plc

As you can clearly see from the Momentum Grade breakdown above, Royalty Pharma plc is considered to have stronger momentum compared to GSK plc. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Royalty Pharma plc could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

GSK plc and Royalty Pharma plc’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
GSK plc	GSK	B
Royalty Pharma plc	RPRX	B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

GSK plc has a Earnings Estimate Score of 69, which is Positive. Royalty Pharma plc has a Earnings Estimate Score of 72, which is Positive.

The Earnings Estimate Revisions Grade Winner: It’s a Tie!

Looking at the Earnings Estimate Revisions Grade breakdown above, both GSK plc and Royalty Pharma plc have a grade of B. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether GSK plc or Royalty Pharma plc is a better fit.

Other GSK plc and Royalty Pharma plc Grades

In addition to Momentum, Estimate Revisions and Quality, A+ Investor also provides grades for Value and Growth.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether GSK plc and Royalty Pharma plc pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, GSK plc or Royalty Pharma plc Stock?

Overall, GSK plc stock has a Momentum Score of 58, Estimate Revisions Score of 69 and Quality Score of 98.

Royalty Pharma plc stock has a Momentum Score of 82, Estimate Revisions Score of 72 and Quality Score of 53.

Comparing GSK plc and Royalty Pharma plc’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.