AstraZeneca vs Pfizer Which Is More Promising?

AstraZeneca and Pfizer are two leading pharmaceutical companies that are frequently compared by investors. Both companies have a strong presence in the global market and have been at the forefront of developing innovative medical solutions. While AstraZeneca is known for its focus on oncology and respiratory diseases, Pfizer has a diverse portfolio that includes vaccines, consumer healthcare products, and prescription medications. The performance of their stocks is closely monitored by investors seeking to capitalize on the growth potential in the healthcare sector.

AstraZeneca or Pfizer?

When comparing AstraZeneca 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 AstraZeneca 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. AstraZeneca has a dividend yield of 2.2%, while Pfizer has a dividend yield of 6.62%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AstraZeneca reports a 5-year dividend growth of 0.42% year and a payout ratio of 71.25%. On the other hand, Pfizer reports a 5-year dividend growth of 3.82% 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 AstraZeneca P/E ratio at 31.95 and Pfizer's P/E ratio at 33.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AstraZeneca P/B ratio is 5.10 while Pfizer's P/B ratio is 1.56.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AstraZeneca has seen a 5-year revenue growth of 0.70%, while Pfizer's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AstraZeneca's ROE at 16.57% and Pfizer's ROE at 4.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $66.92 for AstraZeneca and $25.10 for Pfizer. Over the past year, AstraZeneca's prices ranged from $60.47 to $87.68, with a yearly change of 45.00%. Pfizer's prices fluctuated between $24.48 and $31.54, with a yearly change of 28.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.