Sifting through countless of stocks in the Medical Equipment, Supplies & Distribution industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Abbott Laboratories or Stevanato Group SpA because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.
Read on to learn how Abbott Laboratories and Stevanato Group SpA compare based on key financial metrics to determine which better meets your investment needs.
About Abbott Laboratories and Stevanato Group SpA
Abbott Laboratories is a global healthcare company. The Company’s portfolio of technologies spans the spectrum of healthcare, with businesses and products in diagnostics, medical devices, nutritional and branded generic medicines. Its segments include Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The Established Pharmaceutical Products segment is engaged in the international sales of a broad line of branded generic pharmaceutical products. The Diagnostic Products segment is engaged in the worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories, and alternate-care testing sites. The Nutritional Products segment is involved in the worldwide sales of a broad line of adult and pediatric nutritional products. The Medical Devices segment includes the worldwide sales of rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation, and diabetes care products.
Stevanato Group SpA is an Italy-based manufacturer and distributor engaged in two segments: Biopharmaceutical and Diagnostic Solutions and Engineering, including the production and distribution of drug containment solutions, drug delivery systems, and diagnostic solutions in the pharmaceutical industry. The Company delivers products, processes, and services across all stages of drug developments, including pre-clinical, clinical, and commercialization. Its Engineering segment includes the equipment and technologies developed and provided to support the end-to-end pharmaceutical, biotechnology, and diagnostic manufacturing processes. The Company operates locally, in Europe, and globally, including Brazil, China, Mexico, and the United States.
Latest Medical Equipment, Supplies & Distribution and Abbott Laboratories, Stevanato Group SpA Stock News
As of August 30, 2023, Abbott Laboratories had a $180.3 billion market capitalization, compared to the Medical Equipment, Supplies & Distribution median of $273.9 million. Abbott Laboratories’s stock is NA in 2023, NA in the previous five trading days and up 2.52% in the past year.
Currently, Abbott Laboratories’s price-earnings ratio is 35.5. Abbott Laboratories’s trailing 12-month revenue is $40.2 billion with a 12.8% net profit margin. Year-over-year quarterly sales growth most recently was -11.4%. Analysts expect adjusted earnings to reach $4.398 per share for the current fiscal year. Abbott Laboratories currently has a 2.0% dividend yield.
Currently, Stevanato Group SpA’s price-earnings ratio is 55.0. Stevanato Group SpA’s trailing 12-month revenue is $1.1 billion with a 14.3% net profit margin. Year-over-year quarterly sales growth most recently was 9.0%. Analysts expect adjusted earnings to reach $0.604 per share for the current fiscal year. Stevanato Group SpA currently has a 0.2% dividend yield.
How We Compare Abbott Laboratories and Stevanato Group SpA Stock Grades
Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Abbott Laboratories and Stevanato Group SpA’s stock grades to see how they measure up against one another.
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Abbott Laboratories and Stevanato Group SpA Stock Value Grades
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Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.
Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.
AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.
Abbott Laboratories has a Value Score of 15, which is Ultra Expensive.
Stevanato Group SpA has a Value Score of 9, which is Ultra Expensive.
The Value Stock Winner: No Clear Winner
Neither Abbott Laboratories or Stevanato Group SpA has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Abbott Laboratories or Stevanato Group SpA is the better investment when it comes to value.
Abbott Laboratories and Stevanato Group SpA Growth Grades
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The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.
In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.
The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.
Abbott Laboratories has a Growth Score of 97, which is Very Strong.
Stevanato Group SpA has a Growth Score of 39, which is Weak.
The Growth Grade Winner: Abbott Laboratories
As you can clearly see from the Growth Grade breakdown above, Abbott Laboratories has a more attractive growth grade than Stevanato Group SpA. For investors who focus solely on how a company is growing relative to other companies in the same industry, Abbott Laboratories could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.
Abbott Laboratories and Stevanato Group SpA’s Quality Grades
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Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.
The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.
The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.
Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.
Abbott Laboratories has a Quality Score of 88, which is Very Strong.
Stevanato Group SpA has a Quality Score of 63, which is Strong.
The Quality Grade Winner: Abbott Laboratories
As you can clearly see from the Quality Grade breakdown above, Abbott Laboratories has a better overall quality grade than Stevanato Group SpA. For investors who are looking for companies with higher quality than others in the same industry, Abbott Laboratories could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.
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Other Abbott Laboratories and Stevanato Group SpA Grades
In addition to Growth, Quality and Value, A+ Investor also provides grades for Momentum and Estimate Revisions.
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AAII’s expansive and robust screening tools like A+ Investor help investors make confident decisions.
Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.
Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).
These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Abbott Laboratories and Stevanato Group SpA pass any of our 60+ stock screens that have outperformed the market since their creation.
So, Which Is the Better Investment, Abbott Laboratories or Stevanato Group SpA Stock?
Overall, Abbott Laboratories stock has a Value Score of 15, Growth Score of 97 and Quality Score of 88.
Stevanato Group SpA stock has a Value Score of 9, Growth Score of 39 and Quality Score of 63.
Comparing Abbott Laboratories and Stevanato Group SpA’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.
Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.
A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
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