Abbott Laboratories (ABT)vsVertex Pharmaceuticals Inc (VRTX)
ABT
Abbott Laboratories
$104.83
+0.74%
HEALTHCARE · Cap: $180.82B
VRTX
Vertex Pharmaceuticals Inc
$454.97
+1.42%
HEALTHCARE · Cap: $113.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Abbott Laboratories generates 269% more annual revenue ($44.33B vs $12.00B). VRTX leads profitability with a 32.9% profit margin vs 14.7%. ABT appears more attractively valued with a PEG of 1.52. VRTX earns a higher WallStSmart Score of 66/100 (B-).
ABT
Buy51
out of 100
Grade: C-
VRTX
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-315.5%
Fair Value
$25.23
Current Price
$104.83
$79.60 premium
Margin of Safety
+36.5%
Fair Value
$716.04
Current Price
$454.97
$261.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Strong operational efficiency at 21.6%
Generating 2.6B in free cash flow
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 39.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Moderate valuation
4.4% revenue growth
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ABT
The strongest argument for ABT centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.
Bear Case : ABT
The primary concerns for ABT are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
ABT profiles as a value stock while VRTX is a mature play — different risk/reward profiles.
ABT carries more volatility with a beta of 0.74 — expect wider price swings.
VRTX is growing revenue faster at 9.5% — sustainability is the question.
ABT generates stronger free cash flow (2.6B), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 51/100), backed by strong 32.9% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Abbott Laboratories
HEALTHCARE · MEDICAL DEVICES · USA
Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in 1888 to formulate known drugs; today, it sells medical devices, diagnostics, branded generic medicines and nutritional products. It split off its research-based pharmaceuticals business into AbbVie in 2013.
Visit Website →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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