Bayer vs Pfizer Which Offers More Value?

Bayer and Pfizer are two of the largest pharmaceutical companies in the world, each with a strong presence in the global market. While both companies specialize in producing a wide range of pharmaceutical products, they are distinct in terms of their focus areas and market strategies. Bayer is known for its expertise in healthcare, agriculture, and high-tech materials, while Pfizer is renowned for its innovative medicines and vaccines. Investors interested in the healthcare sector often compare Bayer and Pfizer stocks to determine which may offer better returns and growth opportunities.

Bayer or Pfizer?

When comparing Bayer 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 Bayer 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. Bayer has a dividend yield of 0.43%, while Pfizer has a dividend yield of 6.57%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bayer reports a 5-year dividend growth of -10.74% year and a payout ratio of -13.52%. 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 Bayer P/E ratio at -5.64 and Pfizer's P/E ratio at 34.02. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bayer P/B ratio is 0.16 while Pfizer's P/B ratio is 1.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bayer has seen a 5-year revenue growth of 3.61%, while Pfizer's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bayer's ROE at -2.61% and Pfizer's ROE at 4.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.29 for Bayer and $25.51 for Pfizer. Over the past year, Bayer's prices ranged from $4.94 to $9.79, with a yearly change of 98.18%. 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.