Abbott Laboratories vs Zoetis Which Should You Buy?

Abbott Laboratories and Zoetis are two leading healthcare companies known for their innovative products and services. Abbott Laboratories primarily focuses on medical devices, diagnostics, and pharmaceuticals, while Zoetis specializes in animal health products. Both companies have a strong track record of growth and profitability, making their stocks attractive options for investors looking to diversify their portfolios. By comparing the performance of Abbott Laboratories and Zoetis stocks, investors can gain valuable insights into the healthcare sector and make informed investment decisions.

Abbott Laboratories or Zoetis?

When comparing Abbott Laboratories and Zoetis, 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 Zoetis.

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 Zoetis has a dividend yield of 0.97%. 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, Zoetis reports a 5-year dividend growth of 24.37% year and a payout ratio of 31.44%.

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 Zoetis's P/E ratio at 33.21. 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 Zoetis's P/B ratio is 15.42.

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 Zoetis's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Abbott Laboratories's ROE at 14.74% and Zoetis's ROE at 47.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $112.16 for Abbott Laboratories and $176.65 for Zoetis. Over the past year, Abbott Laboratories's prices ranged from $99.71 to $121.64, with a yearly change of 21.99%. Zoetis's prices fluctuated between $144.80 and $200.53, with a yearly change of 38.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.