Abbott India vs Gilead Sciences Which Is a Better Investment?
Abbott India and Gilead Sciences are two prominent pharmaceutical companies that have gained recognition for their contributions to the healthcare industry. Both companies have demonstrated strong financial performance and have become attractive options for investors looking to capitalize on the growing demand for healthcare products and services. Abbott India primarily focuses on the development and distribution of a wide range of pharmaceuticals and medical devices, while Gilead Sciences is known for its innovative treatments in areas such as HIV, hepatitis, and oncology. As the healthcare sector continues to evolve, investors are closely monitoring the performance of these two companies to assess their potential for long-term growth and profitability.
Abbott India or Gilead Sciences?
When comparing Abbott India and Gilead Sciences, 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 Gilead Sciences.
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 Gilead Sciences has a dividend yield of 2.67%. 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, Gilead Sciences reports a 5-year dividend growth of 4.10% year and a payout ratio of 1020.21%.
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 Gilead Sciences's P/E ratio at 300.14. 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 Gilead Sciences's P/B ratio is 7.45.
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 Gilead Sciences's is 0.30%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott India's ROE at 39.72% and Gilead Sciences's ROE at 2.61%.
Retail Investors:
Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹30854.45 for Abbott India and $114.50 for Gilead Sciences. Over the past year, Abbott India's prices ranged from ₹25200.00 to ₹31898.95, with a yearly change of 26.58%. Gilead Sciences's prices fluctuated between $62.07 and $117.39, with a yearly change of 89.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.
