Abbott Laboratories vs AstraZeneca Which Offers More Value?

Abbott Laboratories and AstraZeneca are two prominent pharmaceutical companies that are constantly in the spotlight for their performance in the stock market. Abbott Laboratories, known for its wide range of healthcare products and medical devices, has shown consistent growth over the years. On the other hand, AstraZeneca, a global biopharmaceutical company, has had its fair share of ups and downs in the market. Investors often compare the two stocks to gauge which company offers more value and potential for growth in the future.

Abbott Laboratories or AstraZeneca?

When comparing Abbott Laboratories and AstraZeneca, 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 AstraZeneca.

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 1.9%, while AstraZeneca has a dividend yield of 2.18%. 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, AstraZeneca reports a 5-year dividend growth of 0.42% year and a payout ratio of 71.25%.

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 34.76 and AstraZeneca's P/E ratio at 32.23. 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 5.04 while AstraZeneca's P/B ratio is 5.14.

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 AstraZeneca's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott Laboratories's ROE at 14.74% and AstraZeneca's ROE at 16.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $114.89 for Abbott Laboratories and $67.25 for AstraZeneca. Over the past year, Abbott Laboratories's prices ranged from $99.71 to $121.64, with a yearly change of 21.99%. AstraZeneca's prices fluctuated between $60.47 and $87.68, with a yearly change of 45.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.