Better Stock Today Challenge: Kinder Morgan Partners 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.

Today it's the round of 16, and Kinder Morgan Partners takes on AbbVie in our search for the better stock.

Joel South, energy analyst at The Motley Fool, thinks Kinder Morgan Partners  (NYSE: KMP  ) is the better investment because the firm is the premier midstream MLP in the world. Kinder Morgan Partners offer a substantial 7.1% distribution yield, but more importantly, the large pipeline operator continues to grow its payments by strict capital discipline and structuring its contracts so 93% of all revenue is absent commodity risk. With $641 billion expected to be spent in the North American midstream market in the next 20 years, Kinder Morgan Partners could outperform the broad market year in and year out.

Motley Fool health care analyst David Williamson makes the case for AbbVie (NYSE: ABBV  ) 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 best-selling 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.

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


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