Better Buy: Pfizer vs. CONSOL Energy

In today's second-round match-up of The Motley Fool's Better-Buy Tournament, Pfizer squares off against CONSOL Energy in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each other 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 five drugs with more than $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 energy analyst Taylor Muckerman thinks CONSOL Energy (NYSE: CNX  ) should move to the next round because of its accelerating shift into natural gas. While it's the oldest coal producer in the nation, natural gas is CONSOL's future. To avoid being blindsided, though, CONSOL wisely chose to hold on to its lower-cost thermal coal mines and its solely owned export terminal as a nice hedge while the market shakes itself out. Other coal companies are probably jealous of this flexibility.

Watch these analysts square off in the following video, 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!


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2886078, ~/Articles/ArticleHandler.aspx, 11/25/2014 11:30:55 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement