Abbott Laboratories vs Merck & Co Which Is More Profitable?

Abbott Laboratories and Merck & Co are both well-known pharmaceutical companies in the healthcare industry. Abbott has a strong presence in the medical devices and nutrition markets, while Merck is known for its innovative research and development in pharmaceuticals. When comparing their stocks, investors look at factors such as revenue growth, profit margins, research pipeline, and market share. Both companies have shown resilience and growth over the years, making them attractive options for investment in the healthcare sector.

Abbott Laboratories or Merck & Co?

When comparing Abbott Laboratories and Merck & Co, 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 Merck & Co.

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 Merck & Co has a dividend yield of 2.26%. 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, Merck & Co reports a 5-year dividend growth of 8.26% year and a payout ratio of 63.72%.

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 Merck & Co's P/E ratio at 21.26. 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 Merck & Co's P/B ratio is 5.80.

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 Merck & Co's is 0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott Laboratories's ROE at 14.74% and Merck & Co's ROE at 29.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $112.16 for Abbott Laboratories and $100.53 for Merck & Co. Over the past year, Abbott Laboratories's prices ranged from $99.71 to $121.64, with a yearly change of 21.99%. Merck & Co's prices fluctuated between $94.48 and $134.63, with a yearly change of 42.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.