Better Stock Today Challenge: Philip Morris vs. AbbVie

In the spirit of World Cup competition, we're holding our own tournament in search of the Better Stock Today. We're pitting 32 companies against each other and you, the reader, will determine the winner.

Philip Morris International  (NYSE: PM  )  takes on AbbVie  (NYSE: ABBV  )  for this last round-robin match up in our search for the better stock today.

Consumer Goods analyst Mark Reeth believes the No. 1 reason Philip Morris International should take the prize is its unmatched brand power. With the international rights to Marlboro, the world's bestselling cigarette brand by far, Philip Morris claims 28% of the global cigarette market. This massive scale and pricing power rewards the company with the industry's leading profit margins, which should enable it to return even more cash to owners in the form of dividends and buybacks over time. 

Motley Fool health care analyst David Williamson makes the case for AbbVie to win this match-up. He believes AbbVie has been fundamentally undervalued by the market. It is cheap compared to its pharma peers, and its pipeline with hepatitis C and multiple sclerosis drugs in late-stage development is underrated. AbbVie still has Humira, the bestselling drug in the world, under patent until 2016, and generic-drug makers may struggle to get cheap competitors approved after that. AbbVie is poised to outperform in the meantime.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Vote here to determine the winner of this match and sound off in the comments box below. Check back to Fool.com to see who advances in the tournament.


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

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.

DocumentId: 3000635, ~/Articles/ArticleHandler.aspx, 7/22/2014 4:14:33 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