AbbVie vs AstraZeneca Which Is More Promising?

AbbVie and AstraZeneca are two major pharmaceutical companies that are often compared and analyzed by investors. AbbVie is known for its focus on developing and commercializing advanced therapies for a range of medical conditions, including immunology, oncology, and neuroscience. AstraZeneca, on the other hand, is recognized for its expertise in cardiovascular, metabolic, and respiratory diseases. Both companies have experienced fluctuations in their stock prices due to factors such as drug approvals, patent expirations, and market competition. Investors closely monitor these stocks for potential investment opportunities and risks.

AbbVie or AstraZeneca?

When comparing AbbVie and AstraZeneca, 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 AstraZeneca.

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 3.53%, while AstraZeneca has a dividend yield of 2.2%. 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, AstraZeneca reports a 5-year dividend growth of 0.42% year and a payout ratio of 71.25%.

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 60.67 and AstraZeneca's P/E ratio at 32.06. 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 51.52 while AstraZeneca's P/B ratio is 5.11.

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 AstraZeneca's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AbbVie's ROE at 65.72% and AstraZeneca's ROE at 16.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $173.83 for AbbVie and $67.08 for AstraZeneca. Over the past year, AbbVie's prices ranged from $150.17 to $207.32, with a yearly change of 38.06%. AstraZeneca's prices fluctuated between $60.47 and $87.68, with a yearly change of 45.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.