Perrigo vs Cipla Which Is Stronger?

Perrigo and Cipla are two prominent pharmaceutical companies that compete in the global market. Perrigo, headquartered in Ireland, focuses on over-the-counter and generic prescription medications, while Cipla, based in India, specializes in generic drugs and active pharmaceutical ingredients. Both companies have shown strong financial performance in recent years, but their stock prices have fluctuated due to factors such as regulatory challenges, pricing pressures, and market competition. Investors interested in the pharmaceutical sector should closely monitor the performance of Perrigo and Cipla stocks.

Perrigo or Cipla?

When comparing Perrigo and Cipla, 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 Perrigo and Cipla.

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. Perrigo has a dividend yield of 4.0%, while Cipla has a dividend yield of 0.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Perrigo reports a 5-year dividend growth of 7.52% year and a payout ratio of -97.16%. On the other hand, Cipla reports a 5-year dividend growth of 23.16% year and a payout ratio of 0.00%.

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 Perrigo P/E ratio at -24.49 and Cipla's P/E ratio at 26.26. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Perrigo P/B ratio is 0.83 while Cipla's P/B ratio is 4.14.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Perrigo has seen a 5-year revenue growth of 0.00%, while Cipla's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Perrigo's ROE at -3.34% and Cipla's ROE at 16.73%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $27.54 for Perrigo and ₹1452.30 for Cipla. Over the past year, Perrigo's prices ranged from $23.89 to $34.60, with a yearly change of 44.83%. Cipla's prices fluctuated between ₹1192.10 and ₹1702.05, with a yearly change of 42.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.