Abbott Laboratories vs Amgen Which Should You Buy?

Abbott Laboratories and Amgen are two leading pharmaceutical companies with strong positions in the healthcare industry. Both companies have consistently delivered solid financial performance and are well-known for their innovative drugs and medical devices. Abbott has a diverse product portfolio that includes pharmaceuticals, diagnostics, and medical devices, while Amgen is renowned for its biotechnology-focused approach to developing cutting-edge therapies for serious illnesses. Investors looking to capitalize on the growth potential of the healthcare sector may find both Abbott Laboratories and Amgen stocks as attractive investment options.

Abbott Laboratories or Amgen?

When comparing Abbott Laboratories and Amgen, 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 Amgen.

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 1.94%, while Amgen has a dividend yield of 3.33%. 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, Amgen reports a 5-year dividend growth of 10.04% year and a payout ratio of 112.70%.

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 34.10 and Amgen's P/E ratio at 34.36. 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 4.94 while Amgen's P/B ratio is 19.31.

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 Amgen's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott Laboratories's ROE at 14.74% and Amgen's ROE at 68.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $112.16 for Abbott Laboratories and $270.02 for Amgen. Over the past year, Abbott Laboratories's prices ranged from $99.71 to $121.64, with a yearly change of 21.99%. Amgen's prices fluctuated between $257.80 and $346.85, with a yearly change of 34.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.