AbbVie vs Novartis

AbbVie and Novartis are two leading pharmaceutical companies in the healthcare industry, both known for their innovative drugs and strong financial performance. AbbVie, a global biopharmaceutical company, focuses on developing treatments for a wide range of diseases, while Novartis, a multinational healthcare company, is known for its diverse portfolio of pharmaceuticals and medical devices. Investors in these stocks must consider factors such as drug pipeline, financial stability, and market trends to make informed decisions on where to invest.

AbbVie

Novartis

Stock Price
Day Low$191.22
Day High$196.18
Year Low$135.85
Year High$199.95
Yearly Change47.18%
Revenue
Revenue Per Share$31.09
5 Year Revenue Growth0.45%
10 Year Revenue Growth1.60%
Profit
Gross Profit Margin0.72%
Operating Profit Margin0.27%
Net Profit Margin0.10%
Stock Price
Day Low$115.85
Day High$116.92
Year Low$92.19
Year High$120.92
Yearly Change31.16%
Revenue
Revenue Per Share$23.71
5 Year Revenue Growth-0.02%
10 Year Revenue Growth-0.07%
Profit
Gross Profit Margin0.74%
Operating Profit Margin0.25%
Net Profit Margin0.34%

AbbVie

Novartis

Financial Ratios
P/E ratio63.57
PEG ratio4.83
P/B ratio50.07
ROE57.35%
Payout ratio201.82%
Current ratio0.81
Quick ratio0.71
Cash ratio0.31
Dividend
Dividend Yield3.23%
5 Year Dividend Yield10.52%
10 Year Dividend Yield13.98%
AbbVie Dividend History
Financial Ratios
P/E ratio14.61
PEG ratio1.67
P/B ratio5.66
ROE38.92%
Payout ratio47.13%
Current ratio0.93
Quick ratio0.72
Cash ratio0.29
Dividend
Dividend Yield6.5%
5 Year Dividend Yield5.40%
10 Year Dividend Yield4.35%
Novartis Dividend History

AbbVie or Novartis?

When comparing AbbVie and Novartis, 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 Novartis.

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 3.23%, while Novartis has a dividend yield of 6.5%. 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 201.82%. On the other hand, Novartis reports a 5-year dividend growth of 5.40% year and a payout ratio of 47.13%.

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 63.57 and Novartis's P/E ratio at 14.61. 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 50.07 while Novartis's P/B ratio is 5.66.

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 Novartis's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AbbVie's ROE at 57.35% and Novartis's ROE at 38.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $191.22 for AbbVie and $115.85 for Novartis. Over the past year, AbbVie's prices ranged from $135.85 to $199.95, with a yearly change of 47.18%. Novartis's prices fluctuated between $92.19 and $120.92, with a yearly change of 31.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.

Comparision