In today's first round match-up of The Motley Fool Better-Buy Tournament, Pfizer squares off against Apple in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each as they make the case for their stocks with the winner determined by you, the readers.
In response to losing cash cow Lipitor, Pfizer (NYSE:PFE) reimagined itself as a focused drug development company, selling off its nutrition business and spinning out its animal health division. Pfizer has 5 drugs with over $2 billion in 2013 sales each; and Pfizer management is focused on shareholder value -- increasing the dividend while decreasing share count via buybacks. Pfizer's 3.2% dividend has a low payout ratio of only 30% and the company is flush with cash making increases likely in the future. Finally, drugs like Xeljanz and Prevnar have a strong growth trajectory while developmental assets like palbociclib in breast cancer may be the next great Pfizer blockbuster, according to Motley Fool analyst David Williamson.
Motley Fool tech and telecom analyst Andrew Tonner makes the case for Apple (NASDAQ:AAPL) to advance to the next round because of its intriguing mix of value and growth potential. As the world's largest publicly traded company, it's grown increasingly difficult for Apple to maintain its historically high growth rates, much to its investors' dismay. However, the tide could be ready to turn for Apple as the company should introduce at least one new product this year, which could reenergize this tech giant's growth in the months, and even years, to come.
Watch these analysts square off in the video below and then vote for a winner. Then check out the other companies in the Motley Fool Better-Buy Bracket.
This year's winning stock?
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.
Cast your vote in the poll below the video!
Andrew Tonner owns shares of Apple. David Williamson owns shares of Apple and Pfizer. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.