Abbott Laboratories vs AbbVie Which Is Superior?

Abbott Laboratories and AbbVie are two separate entities that were previously part of the same corporation. Abbott Laboratories is a diversified healthcare company that produces a wide range of medical devices, diagnostics, nutritional products, and pharmaceuticals. AbbVie, on the other hand, is a biopharmaceutical company focused on developing and commercializing innovative treatments for various medical conditions. Investors often compare the performance of these two stocks to determine which offers better growth potential and investment opportunity in the healthcare sector.

Abbott Laboratories or AbbVie?

When comparing Abbott Laboratories 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 Laboratories 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 Laboratories has a dividend yield of 2.37%, while AbbVie has a dividend yield of 4.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Abbott Laboratories reports a 5-year dividend growth of 12.74% year and a payout ratio of 65.30%. On the other hand, AbbVie reports a 5-year dividend growth of 10.52% year and a payout ratio of 212.79%.

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 Laboratories P/E ratio at 34.86 and AbbVie's P/E ratio at 56.98. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Abbott Laboratories P/B ratio is 5.05 while AbbVie's P/B ratio is 48.39.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Abbott Laboratories has seen a 5-year revenue growth of 0.33%, while AbbVie's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott Laboratories's ROE at 14.74% and AbbVie's ROE at 65.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $114.45 for Abbott Laboratories and $164.72 for AbbVie. Over the past year, Abbott Laboratories's prices ranged from $98.95 to $121.64, with a yearly change of 22.93%. AbbVie's prices fluctuated between $137.14 and $207.32, with a yearly change of 51.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.