Abbott Laboratories vs DexCom Which Is More Promising?

Abbott Laboratories and DexCom are both reputable companies in the medical industry that offer innovative products and services related to diabetes management. While Abbott Laboratories is a diversified healthcare company with a strong track record of success, DexCom specializes in continuous glucose monitoring systems. Investors looking to capitalize on the growing demand for diabetes-related products may find opportunities in both companies' stocks. Understanding the potential risks and rewards of investing in Abbott Laboratories vs DexCom stocks is key to making informed investment decisions.

Abbott Laboratories or DexCom?

When comparing Abbott Laboratories and DexCom, 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 DexCom.

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 1.93%, while DexCom has a dividend yield of -%. 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, DexCom reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 34.24 and DexCom's P/E ratio at 45.70. 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 4.96 while DexCom's P/B ratio is 15.72.

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 DexCom's is 2.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott Laboratories's ROE at 14.74% and DexCom's ROE at 31.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $113.30 for Abbott Laboratories and $77.83 for DexCom. Over the past year, Abbott Laboratories's prices ranged from $99.71 to $121.64, with a yearly change of 21.99%. DexCom's prices fluctuated between $62.34 and $142.00, with a yearly change of 127.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.