Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmaceutical giant GlaxoSmithKline (NYSE:GSK) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Glaxo's business and see what CAPS investors are saying about the stock right now.

Glaxo facts

Headquarters (Founded)

Brentford, United Kingdom (1935)

Market Cap

$101.3 billion



TTM Revenue

$39.4 billion (23 billion GBP)


CEO Andrew Witty (since May 2008)

CFO Julian Heslop (since April 2005)

Return on Capital (average last three years)


Dividend Yield



Novartis (NYSE:NVS),

Schering-Plough (NYSE:SGP)

CAPS members bullish on GSK also bullish on

Johnson & Johnson (NYSE:JNJ),

Pfizer (NYSE:PFE)

CAPS members bearish on GSK also bearish on

Merck (NYSE:MRK),

Microsoft (NASDAQ:MSFT)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 888 of the 945 members who have rated Glaxo -- some 94% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include All-Stars aracer and TMFBreakerJava, both of whom are ranked in the top 10% of our community.

Two weeks ago, aracer kept the bullish case simple: "Good company. Good yield. Attractive price. Safe harbor."

In a more detailed pitch from late June, TMFBreakerJava shares that sentiment, writing:

[GlaxoSmithKline] is a diversified multinational drug maker with a long and profitable history. They recently acquired a favorite of mine, Sirtris Pharmaceuticals. Sirtris is pursuing research into anti-aging properties of the Sirtuin genes which are activated by Resveratrol, a component found in red wine...

Of course [Glaxo] is much more than Sirtris. They have a diversified portfolio of drugs and a global base. Another interesting avenue they are pursuing includes a collaboration with Exelixis Pharma on MET inhibitor XL880. [Glaxo] has the right to select a second Exelixis compound for further development this fall.

By all accounts [Glaxo] is well run and likely to outperform over the coming five years.

What do you think about Glaxo, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. GlaxoSmithKline, Johnson & Johnson, and Pfizer are Motley Fool Income Investor recommendations. Pfizer is also an Inside Value pick, as is Microsoft. Exelixis is a choice of Rule Breakers. The Fool owns shares of Pfizer and Exelixis. The Fool's disclosure policy always gets a perfect score.