Phibro Animal Health (NASDAQ:PAHC) and Abbott Laboratories (NYSE:ABT) Head-To-Head Contrast

Phibro Animal Health (NASDAQ:PAHC) and Abbott Laboratories (NYSE:ABT) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares Phibro Animal Health and Abbott Laboratories”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phibro Animal Health	$1.30 billion	1.71	$48.26 million	$2.25	24.31
Abbott Laboratories	$44.33 billion	3.63	$6.52 billion	$3.57	25.90

Abbott Laboratories has higher revenue and earnings than Phibro Animal Health. Phibro Animal Health is trading at a lower price-to-earnings ratio than Abbott Laboratories, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Phibro Animal Health and Abbott Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phibro Animal Health	6.29%	38.28%	8.37%
Abbott Laboratories	13.90%	17.71%	10.76%

Dividends

Phibro Animal Health pays an annual dividend of $0.48 per share and has a dividend yield of 0.9%. Abbott Laboratories pays an annual dividend of $2.52 per share and has a dividend yield of 2.7%. Phibro Animal Health pays out 21.3% of its earnings in the form of a dividend. Abbott Laboratories pays out 70.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Abbott Laboratories has increased its dividend for 54 consecutive years. Abbott Laboratories is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

99.3% of Phibro Animal Health shares are owned by institutional investors. Comparatively, 75.2% of Abbott Laboratories shares are owned by institutional investors. 50.1% of Phibro Animal Health shares are owned by insiders. Comparatively, 0.5% of Abbott Laboratories shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Phibro Animal Health has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Abbott Laboratories has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Phibro Animal Health and Abbott Laboratories, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phibro Animal Health	1	3	2	1	2.43
Abbott Laboratories	0	5	19	2	2.88

Phibro Animal Health presently has a consensus price target of $42.40, indicating a potential downside of 22.47%. Abbott Laboratories has a consensus price target of $119.43, indicating a potential upside of 29.18%. Given Abbott Laboratories’ stronger consensus rating and higher probable upside, analysts clearly believe Abbott Laboratories is more favorable than Phibro Animal Health.

Summary

Abbott Laboratories beats Phibro Animal Health on 14 of the 18 factors compared between the two stocks.

About Phibro Animal Health

Phibro Animal Health Corporation operates as an animal health and mineral nutrition company in the United States, Israel, Brazil, Ireland, and internationally. It operates through three segments: Animal Health, Mineral Nutrition, and Performance Products. The company develops, manufactures, and markets various products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture, and dogs. It also offers animal health products, such as antibacterials, anticoccidials, nutritional specialty, and vaccines and vaccine adjuvants for animal’s health and performance, food safety, and animal welfare; and engages in development, manufacturing, and marketing of microbial and bioproducts for various applications serving animal health and nutrition, environmental, industrial, and agricultural customers. In addition, the company develops, manufactures, and markets conventionally licensed and autogenous vaccine products, as well as adjuvants for animal vaccine manufacturers. Further, it provides formulations and concentrations of trace minerals, such as zinc, manganese, copper, iron, and other compounds to fortify the daily feed requirements of their livestock’s diets and maintain optimal balance of trace elements in animals. Additionally, the company offers specialty ingredients for personal care, industrial chemical, and chemical catalyst industries. It sells its animal health and mineral nutrition products through local sales offices to integrated poultry, swine, and cattle producers, as well as through commercial animal feed manufacturers, wholesalers, and distributors. The company was formerly known as Philipp Brothers Chemicals, Inc. and changed its name to Phibro Animal Health Corporation in July 2003. Phibro Animal Health Corporation was founded in 1946 and is headquartered in Teaneck, New Jersey.

About Abbott Laboratories

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière’s disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also offers laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for laboratories. In addition, the company provides pediatric and adult nutritional products; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.