Abbott India vs Eli Lilly Which Performs Better?
Abbott India and Eli Lilly are both leading pharmaceutical companies with a strong presence in the Indian market. While Abbott India is known for its diverse portfolio of healthcare products and strong distribution network, Eli Lilly is renowned for its innovative treatments in areas such as diabetes, oncology, and neurology. Both companies have seen steady growth in their stock prices over the years, with Abbott India being a favorite among investors for its consistent performance. However, Eli Lilly's focus on research and development has also garnered attention from those seeking long-term growth potential in the healthcare sector.
Abbott India or Eli Lilly?
When comparing Abbott India and Eli Lilly, 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 Eli Lilly.
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 Eli Lilly has a dividend yield of 0.58%. 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, Eli Lilly reports a 5-year dividend growth of 15.05% year and a payout ratio of 33.16%.
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 Eli Lilly's P/E ratio at 79.33. 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 Eli Lilly's P/B ratio is 58.67.
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 Eli Lilly's is 1.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott India's ROE at 39.72% and Eli Lilly's ROE at 77.11%.
Retail Investors:
Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹30854.45 for Abbott India and $903.05 for Eli Lilly. Over the past year, Abbott India's prices ranged from ₹25200.00 to ₹31898.95, with a yearly change of 26.58%. Eli Lilly's prices fluctuated between $711.40 and $972.53, with a yearly change of 36.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.
