AbbVie vs Pfizer Which Performs Better?

AbbVie and Pfizer are two pharmaceutical giants that are constantly in competition in the stock market. AbbVie, known for its popular drugs like Humira, has seen steady growth over the years. On the other hand, Pfizer, with its wide range of products and global presence, remains a strong contender in the industry. Investors often compare the two companies' stocks to determine which one offers a better investment opportunity. This analysis delves into the performance and prospects of AbbVie vs Pfizer stocks.

AbbVie or Pfizer?

When comparing AbbVie and Pfizer, 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 Pfizer.

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 4.44%, while Pfizer has a dividend yield of 6.4%. 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, Pfizer reports a 5-year dividend growth of 4.08% year and a payout ratio of 221.76%.

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 60.35 and Pfizer's P/E ratio at 34.91. 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 45.31 while Pfizer's P/B ratio is 1.61.

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 Pfizer's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AbbVie's ROE at 64.09% and Pfizer's ROE at 4.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $172.70 for AbbVie and $26.22 for Pfizer. Over the past year, AbbVie's prices ranged from $136.30 to $207.32, with a yearly change of 52.11%. Pfizer's prices fluctuated between $25.20 and $31.54, with a yearly change of 25.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.