Better Buy: General Electric vs. AbbVie

In today's match-up of The Motley Fool's Better-Buy Tournament, General Electric squares off against AbbVie 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.

General Electric  (NYSE: GE  ) looks to be an ideal play for today's hot and frothy market, according to Motley Fool analyst Blake Bos. Investors get stable recurring revenues, cash flows, and a 3.4% dividend. Combine that with the upcoming spin-off of GE Capital and General Electric's growth initiatives, and the future looks good for the company. In today's arguably expensive market, it looks to be a nice conservative investment for the long term. It's not sexy and exciting, but it shouldn't get you in trouble.

Although AbbVie (NYSE: ABBV  ) is potentially losing its "golden goose" Humira when its patent runs out in 2016, according to Motley Fool analyst David Williamson, the pharma's goose is not cooked. In fact, AbbVie has never been more exciting. Humira notched $10.7 billion in 2013 sales, and generic competition may have trouble getting approved. AbbVie isn't a one-trick pony. It has a hepatitis-C regimen in late-stage development, with a 90% cure rate that should easily hit blockbuster status, along with upcoming phase 3 data in exciting drugs for multiple sclerosis and endometriosis this year. So don't fear the end of Humira, says David: AbbVie is just getting started.

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's Better-Buy Bracket

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Cast your vote in the poll below the video!


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  • Report this Comment On March 25, 2014, at 10:41 AM, PEStudent wrote:

    Abbvie's Humira is biosynthesized based on a DNA fragment that no one else possesses. So even when it loses patent protection, who else can make the same thing?

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