Abbott Laboratories vs Pfizer Which Is More Lucrative?

Abbott Laboratories and Pfizer are two pharmaceutical giants that have been prominent players in the healthcare industry for many years. Abbott Laboratories is known for its diverse portfolio of healthcare products, including medical devices, diagnostics, and nutritional products. On the other hand, Pfizer is one of the world's largest pharmaceutical companies, specializing in a wide range of prescription medications and vaccines. Investors often compare the two stocks due to their significant presence in the healthcare market and track record of delivering strong financial performance.

Abbott Laboratories or Pfizer?

When comparing Abbott Laboratories and Pfizer, 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 Pfizer.

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 Pfizer has a dividend yield of 6.57%. 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, Pfizer reports a 5-year dividend growth of 3.82% year and a payout ratio of 221.76%.

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 Pfizer's P/E ratio at 34.03. 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 Pfizer's P/B ratio is 1.57.

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 Pfizer's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott Laboratories's ROE at 14.74% and Pfizer's ROE at 4.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $112.16 for Abbott Laboratories and $25.26 for Pfizer. Over the past year, Abbott Laboratories's prices ranged from $99.71 to $121.64, with a yearly change of 21.99%. Pfizer's prices fluctuated between $24.48 and $31.54, with a yearly change of 28.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.