AbbVie vs Zoetis Which Is More Promising?

AbbVie and Zoetis are two prominent pharmaceutical companies with a focus on different areas of the healthcare industry. AbbVie is known for its pharmaceutical products, particularly in the areas of immunology, oncology, and neuroscience. On the other hand, Zoetis specializes in animal health products and services. Both companies have seen steady growth in their stock prices in recent years, but investors may need to carefully consider factors such as market trends, product pipelines, and competition when deciding between AbbVie and Zoetis stocks.

AbbVie or Zoetis?

When comparing AbbVie and Zoetis, 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 Zoetis.

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 Zoetis has a dividend yield of 0.97%. 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, Zoetis reports a 5-year dividend growth of 24.37% year and a payout ratio of 31.44%.

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 Zoetis's P/E ratio at 33.21. 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 Zoetis's P/B ratio is 15.42.

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 Zoetis's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AbbVie's ROE at 65.72% and Zoetis's ROE at 47.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $172.39 for AbbVie and $176.65 for Zoetis. Over the past year, AbbVie's prices ranged from $151.29 to $207.32, with a yearly change of 37.03%. Zoetis's prices fluctuated between $144.80 and $200.53, with a yearly change of 38.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.