AbbVie vs Nestlé Which Performs Better?

AbbVie and Nestlé are two well-known companies in the business world, but they operate in very different industries. AbbVie is a pharmaceutical company known for its innovative medical treatments, while Nestlé is a multinational food and beverage corporation. When it comes to stocks, AbbVie has shown strong growth potential with its focus on research and development in the healthcare sector. On the other hand, Nestlé has a stable track record of consistent performance in the consumer goods market. Investors looking for stability may lean towards Nestlé, while those seeking growth opportunities may consider AbbVie.

AbbVie or Nestlé?

When comparing AbbVie and Nestlé, 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 Nestlé.

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 4.7%, while Nestlé has a dividend yield of 6.94%. 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, Nestlé reports a 5-year dividend growth of 6.70% year and a payout ratio of 69.76%.

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 56.98 and Nestlé's P/E ratio at 18.03. 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 48.39 while Nestlé's P/B ratio is 6.15.

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 Nestlé's is 0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AbbVie's ROE at 65.72% and Nestlé's ROE at 32.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $164.72 for AbbVie and $87.07 for Nestlé. Over the past year, AbbVie's prices ranged from $137.14 to $207.32, with a yearly change of 51.17%. Nestlé's prices fluctuated between $87.07 and $117.55, with a yearly change of 35.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.