AbbVie vs Abbott Laboratories Which Is More Attractive?

AbbVie and Abbott Laboratories are both prominent players in the healthcare industry, however, they have distinct business models and revenue streams. AbbVie primarily focuses on pharmaceuticals, particularly specialty drugs such as Humira, while Abbott Laboratories has a more diversified portfolio including medical devices, nutritional products and diagnostics. Investors considering these stocks should closely monitor factors such as patent expirations, regulatory approvals, and pipeline developments to make informed investment decisions.

AbbVie or Abbott Laboratories?

When comparing AbbVie and Abbott Laboratories, 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 AbbVie and Abbott Laboratories.

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. AbbVie has a dividend yield of 3.58%, while Abbott Laboratories has a dividend yield of 1.94%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AbbVie reports a 5-year dividend growth of 10.52% year and a payout ratio of 212.79%. On the other hand, Abbott Laboratories reports a 5-year dividend growth of 12.74% year and a payout ratio of 65.30%.

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 AbbVie P/E ratio at 59.88 and Abbott Laboratories's P/E ratio at 34.10. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AbbVie P/B ratio is 50.84 while Abbott Laboratories's P/B ratio is 4.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AbbVie has seen a 5-year revenue growth of 0.45%, while Abbott Laboratories's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AbbVie's ROE at 65.72% and Abbott Laboratories's ROE at 14.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $172.39 for AbbVie and $112.16 for Abbott Laboratories. Over the past year, AbbVie's prices ranged from $151.29 to $207.32, with a yearly change of 37.03%. Abbott Laboratories's prices fluctuated between $99.71 and $121.64, with a yearly change of 21.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.