Abbott Laboratories vs Gilead Sciences Which Performs Better?

Abbott Laboratories and Gilead Sciences are both prominent players in the biopharmaceutical industry, each with a strong track record of innovation and success. Abbott Labs, founded in 1888, has a diverse portfolio of healthcare products ranging from medical devices to pharmaceuticals. Gilead Sciences, established in 1987, is known for its groundbreaking work in antiviral drugs, particularly in the treatment of HIV and hepatitis. Investors interested in the healthcare sector may find opportunities for growth and value in both companies' stocks.

Abbott Laboratories or Gilead Sciences?

When comparing Abbott Laboratories and Gilead Sciences, 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 Gilead Sciences.

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 2.38%, while Gilead Sciences has a dividend yield of 4.13%. 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, Gilead Sciences reports a 5-year dividend growth of 5.64% year and a payout ratio of 3862.70%.

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 34.91 and Gilead Sciences's P/E ratio at 916.74. 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 5.06 while Gilead Sciences's P/B ratio is 0.00.

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 0.32%, while Gilead Sciences's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott Laboratories's ROE at 14.74% and Gilead Sciences's ROE at 0.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $115.55 for Abbott Laboratories and $91.63 for Gilead Sciences. Over the past year, Abbott Laboratories's prices ranged from $96.92 to $121.64, with a yearly change of 25.51%. Gilead Sciences's prices fluctuated between $62.07 and $98.90, with a yearly change of 59.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.