AbbVie vs DexCom Which Outperforms?

AbbVie and DexCom are two companies in the healthcare sector that have been performing well in the stock market. AbbVie is a pharmaceutical company known for its strong pipeline of drugs, while DexCom specializes in medical devices for diabetes management. Both companies have seen growth in their stock prices over the years, with AbbVie benefiting from its successful acquisitions and product launches, and DexCom profiting from the increasing demand for diabetes management solutions. Investors have shown interest in both stocks due to their strong performance and potential for continued growth in the healthcare sector.

AbbVie or DexCom?

When comparing AbbVie and DexCom, 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 DexCom.

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 4.55%, while DexCom has a dividend yield of -%. 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, DexCom reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 58.83 and DexCom's P/E ratio at 42.00. 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 49.96 while DexCom's P/B ratio is 14.45.

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 DexCom's is 2.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AbbVie's ROE at 65.72% and DexCom's ROE at 31.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $169.65 for AbbVie and $71.86 for DexCom. Over the past year, AbbVie's prices ranged from $136.30 to $207.32, with a yearly change of 52.11%. DexCom's prices fluctuated between $62.34 and $142.00, with a yearly change of 127.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.