AbbVie vs Gilead Sciences Which Is More Reliable?

AbbVie and Gilead Sciences are two prominent biopharmaceutical companies that have been making waves in the stock market. AbbVie, best known for its blockbuster drug Humira, has a strong portfolio of medications in various therapeutic areas. Gilead Sciences, on the other hand, is renowned for its antiviral drugs, most notably for the treatment of HIV/AIDS and hepatitis C. Investors often compare the two companies due to their high market capitalization and innovative product pipelines.

AbbVie or Gilead Sciences?

When comparing AbbVie and Gilead Sciences, 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 Gilead Sciences.

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 Gilead Sciences has a dividend yield of 3.35%. 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, Gilead Sciences reports a 5-year dividend growth of 5.64% year and a payout ratio of 3862.70%.

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 59.88 and Gilead Sciences's P/E ratio at 909.07. 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 Gilead Sciences's P/B ratio is 6.20.

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 Gilead Sciences's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AbbVie's ROE at 65.72% and Gilead Sciences's ROE at 0.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $172.39 for AbbVie and $89.15 for Gilead Sciences. Over the past year, AbbVie's prices ranged from $151.29 to $207.32, with a yearly change of 37.03%. Gilead Sciences's prices fluctuated between $62.07 and $98.90, with a yearly change of 59.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.