Zoetis vs Abbott Laboratories Which Is More Profitable?

Zoetis Inc. and Abbott Laboratories are two leading companies in the healthcare sector, with a focus on animal health and pharmaceuticals respectively. Zoetis is known for its extensive portfolio of veterinary products and services, while Abbott Laboratories is renowned for its innovative healthcare solutions. Investors interested in these stocks may consider factors such as market performance, financial stability, and growth potential. By analyzing both companies' stocks, investors can make informed decisions on where to allocate their resources for potential long-term growth and profits.

Zoetis or Abbott Laboratories?

When comparing Zoetis and Abbott Laboratories, 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 Zoetis and Abbott Laboratories.

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. Zoetis has a dividend yield of 0.97%, while Abbott Laboratories has a dividend yield of 1.94%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Zoetis reports a 5-year dividend growth of 24.37% year and a payout ratio of 31.44%. On the other hand, Abbott Laboratories reports a 5-year dividend growth of 12.74% year and a payout ratio of 65.30%.

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 Zoetis P/E ratio at 33.21 and Abbott Laboratories's P/E ratio at 34.10. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Zoetis P/B ratio is 15.42 while Abbott Laboratories's P/B ratio is 4.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Zoetis has seen a 5-year revenue growth of 0.54%, while Abbott Laboratories's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Zoetis's ROE at 47.99% and Abbott Laboratories's ROE at 14.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $176.65 for Zoetis and $112.16 for Abbott Laboratories. Over the past year, Zoetis's prices ranged from $144.80 to $200.53, with a yearly change of 38.49%. Abbott Laboratories's prices fluctuated between $99.71 and $121.64, with a yearly change of 21.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.