AbbVie vs Amgen Which Is More Attractive?

AbbVie and Amgen are two pharmaceutical giants that have been dominating the stock market in recent years. Both companies are known for their innovative treatments and strong financial performance. AbbVie, known for its blockbuster drug Humira, has been facing challenges with patent expirations, while Amgen has been investing heavily in research and development to diversify its product portfolio. Investors are closely watching these two stocks, as they navigate regulatory hurdles and industry competition.

AbbVie or Amgen?

When comparing AbbVie and Amgen, 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 Amgen.

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 4.44%, while Amgen has a dividend yield of 2.76%. 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, Amgen reports a 5-year dividend growth of 10.04% year and a payout ratio of 112.70%.

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 60.35 and Amgen's P/E ratio at 40.85. 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 45.31 while Amgen's P/B ratio is 22.96.

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 Amgen's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AbbVie's ROE at 64.09% and Amgen's ROE at 68.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $172.70 for AbbVie and $321.61 for Amgen. Over the past year, AbbVie's prices ranged from $136.30 to $207.32, with a yearly change of 52.11%. Amgen's prices fluctuated between $260.52 and $346.85, with a yearly change of 33.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.