Abbott India vs GSK Which Is More Reliable?

Abbott India and GlaxoSmithKline (GSK) are two pharmaceutical giants that have captured the attention of investors in the stock market. Abbott India has a strong presence in the Indian market, offering a wide range of pharmaceuticals and healthcare products. On the other hand, GSK is a global player with a diverse portfolio of pharmaceuticals, vaccines, and consumer health products. Both companies have shown resilience and growth potential in the face of market fluctuations, making them attractive options for investors seeking exposure to the pharmaceutical industry.

Abbott India or GSK?

When comparing Abbott India and GSK, 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 GSK.

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 1.43%, while GSK has a dividend yield of 4.59%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Abbott India reports a 5-year dividend growth of 96.10% year and a payout ratio of 0.00%. On the other hand, GSK reports a 5-year dividend growth of -4.37% year and a payout ratio of 95.58%.

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 47.39 and GSK's P/E ratio at 21.85. 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 17.29 while GSK's P/B ratio is 3.92.

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 GSK's is -0.53%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott India's ROE at 38.24% and GSK's ROE at 18.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹28341.25 for Abbott India and $33.75 for GSK. Over the past year, Abbott India's prices ranged from ₹22000.00 to ₹30521.00, with a yearly change of 38.73%. GSK's prices fluctuated between $32.83 and $45.93, with a yearly change of 39.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.