AbbVie (NYSE: ABBV) and Rockwell Medical (NASDAQ:RMTI) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
This is a summary of current ratings for AbbVie and Rockwell Medical, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AbbVie presently has a consensus price target of $83.75, indicating a potential downside of 4.14%. Rockwell Medical has a consensus price target of $9.33, indicating a potential upside of 45.15%. Given Rockwell Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Rockwell Medical is more favorable than AbbVie.
Valuation and Earnings
This table compares AbbVie and Rockwell Medical’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AbbVie||$26.71 billion||5.21||$11.57 billion||$4.07||21.47|
|Rockwell Medical||$54.04 million||6.16||-$21.07 million||($0.42)||-15.31|
AbbVie has higher revenue and earnings than Rockwell Medical. Rockwell Medical is trading at a lower price-to-earnings ratio than AbbVie, indicating that it is currently the more affordable of the two stocks.
This table compares AbbVie and Rockwell Medical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
68.3% of AbbVie shares are held by institutional investors. Comparatively, 21.4% of Rockwell Medical shares are held by institutional investors. 0.2% of AbbVie shares are held by insiders. Comparatively, 15.9% of Rockwell Medical shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
AbbVie pays an annual dividend of $2.56 per share and has a dividend yield of 2.9%. Rockwell Medical does not pay a dividend. AbbVie pays out 62.9% of its earnings in the form of a dividend. Rockwell Medical has increased its dividend for 44 consecutive years.
Risk & Volatility
AbbVie has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500.
AbbVie beats Rockwell Medical on 9 of the 17 factors compared between the two stocks.
AbbVie Company Profile
AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The Company is engaged in the discovery, development, manufacture and sale of a range of pharmaceutical products. Its products are focused on treating conditions, such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson’s disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis, and other serious health conditions. It offers products in various categories, including HUMIRA (adalimumab), Oncology products, Virology Products, Additional Virology products, Metabolics/Hormones products, Endocrinology products and other products, which include Duopa and Duodopa (carbidopa and levodopa), Anesthesia products and ZINBRYTA (daclizumab).
Rockwell Medical Company Profile
Rockwell Medical, Inc. (Rockwell) is a biopharmaceutical company targeting end-stage renal disease (ESRD) and chronic kidney disease (CKD) with products and services for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis. The Company operates through the hemodialysis market segment, which involves the manufacture, sale and distribution of hemodialysis products to hemodialysis clinics, including pharmaceutical, dialysis concentrates, dialysis kits and other ancillary products used in the dialysis process. The Company’s drug products include Triferic (ferric pyrophosphate citrate) and Calcitriol (Active Vitamin D) Injection. Triferic is an iron compound that is delivered to hemodialysis patients through dialysate, replacing the iron loss that occurs during their dialysis treatment. Calcitriol (active vitamin D) injection is indicated for treatment of secondary hyperparathyroidism in dialysis patients.
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