Abbott Laboratories (NYSE: ABT) is one of 112 public companies in the “Pharmaceuticals” industry, but how does it compare to its peers? We will compare Abbott Laboratories to related companies based on the strength of its institutional ownership, dividends, profitability, risk, earnings, analyst recommendations and valuation.

Profitability

This table compares Abbott Laboratories and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Abbott Laboratories 4.96% 14.43% 6.47%
Abbott Laboratories Competitors -3,613.35% -52.29% -8.30%

Insider & Institutional Ownership

71.5% of Abbott Laboratories shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.8% of Abbott Laboratories shares are owned by insiders. Comparatively, 12.1% of shares of all “Pharmaceuticals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Abbott Laboratories and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Abbott Laboratories $23.61 billion $5.14 billion 73.09
Abbott Laboratories Competitors $7.88 billion $2.51 billion 1.34

Abbott Laboratories has higher revenue and earnings than its peers. Abbott Laboratories is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Abbott Laboratories pays an annual dividend of $1.06 per share and has a dividend yield of 2.0%. Abbott Laboratories pays out 149.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.4% and pay out 82.4% of their earnings in the form of a dividend. Abbott Laboratories has increased its dividend for 44 consecutive years. Abbott Laboratories lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Abbott Laboratories and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Abbott Laboratories 0 4 8 0 2.67
Abbott Laboratories Competitors 944 3791 6009 164 2.49

Abbott Laboratories presently has a consensus target price of $53.25, indicating a potential upside of 2.62%. As a group, “Pharmaceuticals” companies have a potential upside of 27.58%. Given Abbott Laboratories’ peers higher probable upside, analysts plainly believe Abbott Laboratories has less favorable growth aspects than its peers.

Volatility & Risk

Abbott Laboratories has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Abbott Laboratories’ peers have a beta of 0.86, suggesting that their average stock price is 14% less volatile than the S&P 500.

Summary

Abbott Laboratories beats its peers on 10 of the 15 factors compared.

Abbott Laboratories Company Profile

Abbott Laboratories is engaged in the discovery, development, manufacture and sale of a range of healthcare products. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products and Vascular Products. Its Established Pharmaceutical Products include a range of branded generic pharmaceuticals manufactured around the world and marketed and sold outside the United States. Its Diagnostic Products include a range of diagnostic systems and tests. Its Nutritional Products include a range of pediatric and adult nutritional products. Its Company’s Vascular Products include a range of coronary, endovascular, vessel closure and structural heart devices for the treatment of vascular disease. The Company, through St. Jude Medical, Inc., also offers products, such as rhythm management products, electrophysiology products, heart failure related products, vascular products, structural heart products and neuromodulation products.

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