From NASDAQ MarketSite: 2024-09-15 23:20:45

Pfizer stock (NYSE: PFE) is favored over AbbVie stock (NYSE: ABBV) due to better valuation, trading at 11x forward versus 20x for ABBV. Pfizer’s revenue growth has been stronger, but AbbVie is more profitable. Both stocks underperformed the S&P in 2023.
AbbVie stock has outperformed Pfizer in the last three years, with gains of 115% compared to little change for PFE. However, both stocks lagged behind the S&P 500. The Trefis High Quality Portfolio has consistently outperformed the S&P each year.
Pfizer’s revenue grew at a rate of 25.6% from 2020 to 2023, driven by high demand for its Covid-19 products. AbbVie’s revenue saw a 6.5% growth rate over the same period, boosted by the Allergan acquisition in 2020. Pfizer’s revenue fell 42% in 2023 due to lower Covid-19 demand.
AbbVie is more profitable than Pfizer, with a higher operating margin. AbbVie also has lower financial risk, with less debt and more cash. Both companies are expected to see mid-single-digit sales growth in the next three years.
Pfizer is expected to outperform AbbVie in the next three years, with better prospects and valuation. Pfizer’s cost-cutting initiatives and positive second-quarter results support this outlook. PFE stock is trading at a lower P/E ratio than its historical average, indicating room for growth.
AbbVie stock is fully priced compared to Pfizer, trading at 18x expected 2024 earnings. AbbVie’s recent acquisitions aim to drive future growth. While AbbVie may be more profitable, Pfizer is considered the better choice for investors based on prospects and valuation.



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