Gilead Sciences vs AbbVie Which Is More Reliable?

Gilead Sciences and AbbVie are two major players in the pharmaceutical industry, each known for their innovative drug treatments and stable financial performance. Both companies have a strong presence in the market, with Gilead Sciences specializing in antiviral medications and AbbVie focusing on a wide range of therapeutic areas. Investors often compare the two companies when considering pharmaceutical stocks due to their similar market capitalization and revenue. Understanding the key differences in their research pipelines and financial stability is crucial for making informed investment decisions.

Gilead Sciences or AbbVie?

When comparing Gilead Sciences and AbbVie, 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 Gilead Sciences and AbbVie.

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. Gilead Sciences has a dividend yield of 4.17%, while AbbVie has a dividend yield of 3.58%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Gilead Sciences reports a 5-year dividend growth of 5.64% year and a payout ratio of 3862.70%. On the other hand, AbbVie reports a 5-year dividend growth of 10.52% year and a payout ratio of 212.79%.

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 Gilead Sciences P/E ratio at 909.07 and AbbVie's P/E ratio at 59.88. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Gilead Sciences P/B ratio is 6.20 while AbbVie's P/B ratio is 50.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Gilead Sciences has seen a 5-year revenue growth of 0.27%, while AbbVie's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Gilead Sciences's ROE at 0.65% and AbbVie's ROE at 65.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $89.15 for Gilead Sciences and $172.39 for AbbVie. Over the past year, Gilead Sciences's prices ranged from $62.07 to $98.90, with a yearly change of 59.34%. AbbVie's prices fluctuated between $151.29 and $207.32, with a yearly change of 37.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.