Performance Comparison: Abbott Laboratories And Competitors In Health Care Equipment & Supplies Industry

Benzinga - by Benzinga Insights, Benzinga Staff Writer.

In the ever-changing and fiercely competitive business landscape, conducting thorough company analysis is crucial for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Abbott Laboratories (NYSE:ABT) and its primary competitors in the Health Care Equipment & Supplies industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for investors and shed light on company's performance within the industry.

Abbott Laboratories Background Abbott manufactures and markets cardiovascular and diabetes devices, adult and pediatric nutritional products, diagnostic equipment and testing kits, and branded generic drugs. Products include pacemakers, implantable cardioverter defibrillators, neuromodulation devices, coronary stents, catheters, infant formula, nutritional liquids for adults, continuous glucose monitors, and immunoassays and point-of-care diagnostic equipment. Abbott derives approximately 60% of sales outside the United States.

CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth

Abbott Laboratories	34.20	5.01	4.86	4.19%	$2.77	$5.68	1.49%
Stryker Corp	42.47	7.17	6.56	6.26%	$1.51	$3.7	11.78%
Medtronic PLC	26.57	2.15	3.45	2.56%	$2.31	$5.31	4.68%
Boston Scientific Corp	63.50	5.18	6.98	2.65%	$0.88	$2.58	14.9%
Becton Dickinson & Co	55.48	2.76	3.60	1.1%	$1.03	$2.03	2.62%
Edwards Lifesciences Corp	40.62	8.45	9.48	5.56%	$0.35	$1.18	13.78%
DexCom Inc	107.66	26.08	16.44	11.82%	$0.3	$0.66	26.9%
IDEXX Laboratories Inc	52.77	29.71	12.18	13.98%	$0.28	$0.53	8.81%
GE HealthCare Technologies Inc	29.31	5.69	2.09	5.65%	$0.88	$2.16	5.43%
ResMed Inc	32.15	6.37	6.36	4.78%	$0.39	$0.65	12.48%
Zimmer Biomet Holdings Inc	26.20	2.10	3.63	3.35%	$0.58	$1.4	6.3%
Steris PLC	38.93	3.41	4.09	2.24%	$0.36	$0.6	14.77%
Hologic Inc	36.10	3.84	4.73	5.1%	$0.31	$0.57	-5.69%
Shockwave Medical Inc	82.10	17.68	16.54	6.98%	$0.06	$0.18	40.93%
Insulet Corp	56.30	15.80	7.18	15.42%	$0.13	$0.36	37.9%
Teleflex Inc	28.62	2.29	3.44	0.71%	$0.15	$0.43	2.1%
Penumbra Inc	95.20	7.25	8.18	4.75%	$0.03	$0.19	28.69%
Masimo Corp	93.16	5.45	3.72	2.57%	$0.06	$0.26	-11.04%
Globus Medical Inc	48.24	1.75	3.77	0.37%	$0.1	$0.35	124.6%
Integer Holdings Corp	41.46	2.45	2.36	1.77%	$0.07	$0.11	10.94%
Average	52.47	8.19	6.57	5.14%	$0.51	$1.22	18.47%

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.dividend-frequency { font-size: 12px; color: #6c757d; } Through a thorough examination of Abbott Laboratories, we can discern the following trends:

• At 34.2, the stock's Price to Earnings ratio is 0.65x less than the industry average, suggesting favorable growth potential.

• Considering a Price to Book ratio of 5.01, which is well below the industry average by 0.61x, the stock may be undervalued based on its book value compared to its peers.

• With a relatively low Price to Sales ratio of 4.86, which is 0.74x the industry average, the stock might be considered undervalued based on sales performance.

• The Return on Equity (ROE) of 4.19% is 0.95% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.

• The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $2.77 Billion, which is 5.43x above the industry average, implying stronger profitability and robust cash flow generation.

• With higher gross profit of $5.68 Billion, which indicates 4.66x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

• The company is witnessing a substantial decline in revenue growth, with a rate of 1.49% compared to the industry average of 18.47%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

In terms of the Debt-to-Equity ratio, Abbott Laboratories can be assessed by comparing it to its top 4 peers, resulting in the following observations:

• Abbott Laboratories has a stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.4.

• This suggests that the company has a more favorable balance between debt and equity, which can be perceived as a positive indicator by investors.

Key Takeaways The low PE, PB, and PS ratios suggest that Abbott Laboratories is undervalued compared to its peers in the Health Care Equipment & Supplies industry. However, the low ROE indicates lower profitability relative to its peers. The high EBITDA and gross profit levels indicate strong operational performance, while the low revenue growth suggests slower expansion compared to industry peers.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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