Abbott India vs AbbVie Which Is Stronger?

Abbott India and AbbVie are two distinct pharmaceutical companies that offer unique investment opportunities in the healthcare sector. Abbott India, a subsidiary of the global healthcare giant Abbott Laboratories, focuses on manufacturing and marketing pharmaceutical products, while AbbVie specializes in developing innovative therapies for various diseases. Investors looking for stability and consistent returns may find Abbott India appealing, while those seeking growth potential may favor AbbVie. Understanding the differences in their business models, financial performance, and market trends is crucial for making informed investment decisions in these stocks.

Abbott India or AbbVie?

When comparing Abbott India and AbbVie, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Abbott India and AbbVie.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Abbott India has a dividend yield of 1.3%, while AbbVie has a dividend yield of 2.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Abbott India reports a 5-year dividend growth of 93.79% year and a payout ratio of 0.00%. On the other hand, AbbVie reports a 5-year dividend growth of 7.69% year and a payout ratio of 257.71%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Abbott India P/E ratio at 50.08 and AbbVie's P/E ratio at 87.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Abbott India P/B ratio is 18.98 while AbbVie's P/B ratio is 112.31.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Abbott India has seen a 5-year revenue growth of 0.59%, while AbbVie's is 0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott India's ROE at 39.72% and AbbVie's ROE at 70.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹30854.45 for Abbott India and $206.11 for AbbVie. Over the past year, Abbott India's prices ranged from ₹25200.00 to ₹31898.95, with a yearly change of 26.58%. AbbVie's prices fluctuated between $153.58 and $215.66, with a yearly change of 40.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.