Please ensure Javascript is enabled for purposes of website accessibility

Better Buy: General Electric vs. AbbVie

By Dave Williamson and Blake Bos – Mar 23, 2014 at 10:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

We've collected the most popular companies amongst Fool.com readers and put them head-to-head in a good old-fashioned challenge we're calling The Motley Fool's Better-Buy Tournament.

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 (GE -0.18%) 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 (ABBV 0.45%) 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

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!

Blake Bos has no position in any stocks mentioned. David Williamson owns shares of AbbVie. The Motley Fool owns shares of General Electric. We Fools don't 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.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.