ABT vs. VRTX: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ABT and VRTX, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
ABT dominates in value with a market cap of 231.49 billion USD, eclipsing VRTX’s 111.23 billion USD by roughly 2.08×.
With betas of 0.74 for ABT and 0.51 for VRTX, both show similar volatility profiles relative to the overall market.
| Symbol | ABT | VRTX |
|---|---|---|
| Company Name | Abbott Laboratories | Vertex Pharmaceuticals Incorporated |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Devices | Biotechnology |
| CEO | Mr. Robert B. Ford | Dr. Reshma Kewalramani FASN, M.D. |
| Price | 133.05 USD | 433.152 USD |
| Market Cap | 231.49 billion USD | 111.23 billion USD |
| Beta | 0.74 | 0.51 |
| Exchange | NYSE | NASDAQ |
| IPO Date | March 17, 1980 | July 24, 1991 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ABT and VRTX over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
The section examines key financial ratios to assess the valuation of ABT and VRTX based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- VRTX shows a negative P/E of -112.53, highlighting a year of losses, whereas ABT at 17.22 trades on solid profitability.
- VRTX shows a negative forward PEG of -9.04, signaling expected earnings contraction, while ABT at 1.73 maintains analysts’ projections for stable or improved profits.
- VRTX reports a negative Price-to-Free Cash Flow ratio of -88.42, showing a cash flow shortfall that could threaten its operational sustainability, while ABT at 34.77 maintains positive cash flow.
| Symbol | ABT | VRTX |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 17.22 | -112.53 |
| Forward PEG Ratio (TTM) | 1.73 | -9.04 |
| Price-to-Sales Ratio (P/S, TTM) | 5.47 | 10.02 |
| Price-to-Book Ratio (P/B, TTM) | 2.48 | 6.75 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 34.77 | -88.42 |
| EV-to-EBITDA (TTM) | 22.97 | -1418.17 |
| EV-to-Sales (TTM) | 5.63 | 9.75 |
| EV-to-Free Cash Flow (TTM) | 35.78 | -86.01 |
Dividend Comparison
ABT delivers a 1.71% dividend yield, blending income with growth, whereas VRTX appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.
| Symbol | ABT | VRTX |
|---|---|---|
| Dividend Yield (TTM) | 1.71% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ABT and VRTX, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- ABT meets its interest obligations (ratio 15.39). In stark contrast, VRTX’s negative ratio (-32.00) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.
| Symbol | ABT | VRTX |
|---|---|---|
| Current Ratio (TTM) | 1.78 | 2.65 |
| Quick Ratio (TTM) | 1.27 | 2.29 |
| Debt-to-Equity Ratio (TTM) | 0.14 | 0.10 |
| Debt-to-Assets Ratio (TTM) | 0.16 | 0.07 |
| Interest Coverage Ratio (TTM) | 15.39 | -32.00 |