Head-To-Head Contrast: AbbVie (ABBV) versus Rockwell Medical (RMTI)

AbbVie (NYSE: ABBV) and Rockwell Medical (NASDAQ:RMTI) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Risk & Volatility

AbbVie has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500.

Dividends

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 raised its dividend for 44 consecutive years.

Valuation & Earnings

This table compares AbbVie and Rockwell Medical’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AbbVie $26.71 billion 5.24 $11.57 billion $4.07 21.56
Rockwell Medical $54.04 million 6.06 -$21.07 million ($0.42) -15.07

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.

Insider & 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AbbVie and Rockwell Medical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AbbVie 0 6 6 0 2.50
Rockwell Medical 1 0 1 1 2.67

AbbVie currently has a consensus target price of $80.18, indicating a potential downside of 8.62%. Rockwell Medical has a consensus target price of $9.33, indicating a potential upside of 47.45%. Given Rockwell Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Rockwell Medical is more favorable than AbbVie.

Profitability

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
AbbVie 24.77% 150.27% 12.52%
Rockwell Medical -39.68% -42.22% -27.15%

Summary

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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