AbbVie vs Merck Indonesia Which Is a Better Investment?

AbbVie and Merck are two major pharmaceutical companies operating in Indonesia with strong presence in the healthcare sector. AbbVie is known for its innovative drugs for chronic diseases such as cancer, arthritis, and HIV, while Merck specializes in a wide range of health solutions including vaccines, biologics, and prescription medications. Both companies have been performing well in the Indonesian stock market, with AbbVie consistently showing strong growth and Merck enjoying a stable position. Investors are closely monitoring these stocks for potential opportunities in the thriving healthcare industry.

AbbVie or Merck Indonesia?

When comparing AbbVie and Merck Indonesia, 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 Indonesia.

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 Merck Indonesia has a dividend yield of 8.91%. 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 Indonesia reports a 5-year dividend growth of 3.08% year and a payout ratio of 115.53%.

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 Merck Indonesia's P/E ratio at 12.94. 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 Merck Indonesia's P/B ratio is 2.20.

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 Merck Indonesia's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AbbVie's ROE at 65.72% and Merck Indonesia's ROE at 16.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $172.39 for AbbVie and Rp3570.00 for Merck Indonesia. Over the past year, AbbVie's prices ranged from $151.29 to $207.32, with a yearly change of 37.03%. Merck Indonesia's prices fluctuated between Rp3390.00 and Rp4400.00, with a yearly change of 29.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.