Abbott Laboratories vs Johnson & Johnson

Abbott Laboratories and Johnson & Johnson are two leading companies in the healthcare industry, both known for their pharmaceutical and medical devices products. With solid track records of innovation and successful product launches, these companies have been attractive investments for many shareholders. Over the years, Abbott has shown strong performance in its diabetes care and diagnostics divisions, while Johnson & Johnson has a diverse portfolio spanning pharmaceuticals, medical devices, and consumer health products. Investors often compare the performance of these two companies to make informed decisions on their stock investments.

Abbott Laboratories or Johnson & Johnson?

When comparing Abbott Laboratories and Johnson & Johnson, 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 Johnson & Johnson.

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 Johnson & Johnson has a dividend yield of 3.72%. 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 66.47%. On the other hand, Johnson & Johnson reports a 5-year dividend growth of 5.83% year and a payout ratio of 30.49%.

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 36.21 and Johnson & Johnson's P/E ratio at 10.39. 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 5.12 while Johnson & Johnson's P/B ratio is 5.52.

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 Johnson & Johnson's is 0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott Laboratories's ROE at 14.41% and Johnson & Johnson's ROE at 54.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $115.81 for Abbott Laboratories and $159.00 for Johnson & Johnson. Over the past year, Abbott Laboratories's prices ranged from $91.26 to $121.64, with a yearly change of 33.29%. Johnson & Johnson's prices fluctuated between $143.13 and $168.85, with a yearly change of 17.97%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.