AbbVie vs Merck & Co Which Is More Attractive?

AbbVie and Merck & Co are two pharmaceutical giants that have long been regarded as top contenders in the industry. AbbVie is known for its blockbuster drug Humira, which has been a consistent revenue generator for the company. On the other hand, Merck & Co has a diverse portfolio of products, including vaccines and treatments for various diseases. Both companies have experienced fluctuations in their stock prices due to factors such as patent expirations and regulatory challenges. Investors should closely monitor developments in the healthcare sector to make informed decisions about investing in AbbVie vs Merck & Co stocks.

AbbVie or Merck & Co?

When comparing AbbVie and Merck & Co, 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 Merck & Co.

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 Merck & Co has a dividend yield of 3.05%. 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, Merck & Co reports a 5-year dividend growth of 8.26% year and a payout ratio of 63.72%.

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 Merck & Co's P/E ratio at 21.05. 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 Merck & Co's P/B ratio is 5.75.

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 Merck & Co's is 0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AbbVie's ROE at 65.72% and Merck & Co's ROE at 29.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $173.83 for AbbVie and $100.75 for Merck & Co. Over the past year, AbbVie's prices ranged from $150.17 to $207.32, with a yearly change of 38.06%. Merck & Co's prices fluctuated between $94.48 and $134.63, with a yearly change of 42.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.