Abbott Laboratories (NYSE: ABT) is one of 113 public companies in the “Pharmaceuticals” industry, but how does it contrast to its rivals? We will compare Abbott Laboratories to related businesses based on the strength of its valuation, dividends, risk, analyst recommendations, institutional ownership, earnings and profitability.

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 2.3% 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 rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Abbott Laboratories and its rivals’ 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 -3,194.52% -54.90% -8.86%

Analyst Recommendations

This is a summary of recent ratings and target prices for Abbott Laboratories and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Abbott Laboratories 0 4 8 0 2.67
Abbott Laboratories Competitors 952 3826 6069 164 2.49

Abbott Laboratories currently has a consensus price target of $54.75, suggesting a potential upside of 0.75%. As a group, “Pharmaceuticals” companies have a potential upside of 22.50%. Given Abbott Laboratories’ rivals higher possible upside, analysts plainly believe Abbott Laboratories has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Abbott Laboratories and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Abbott Laboratories $23.61 billion $5.14 billion 76.54
Abbott Laboratories Competitors $7.79 billion $2.46 billion 0.03

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

Institutional and Insider Ownership

71.5% of Abbott Laboratories shares are owned by institutional investors. Comparatively, 44.0% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.8% of Abbott Laboratories shares are owned by company insiders. Comparatively, 12.1% of shares of all “Pharmaceuticals” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Abbott Laboratories has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Abbott Laboratories’ rivals have a beta of 0.87, indicating that their average share price is 13% less volatile than the S&P 500.

Summary

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

About Abbott Laboratories

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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