AGN - Better Buy: AbbVie vs. Johnson & Johnson
AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are two of the largest pharmaceutical companies in the world. However, big doesn't mean buy, and both of these juggernauts currently face headwinds that may scare many investors away. AbbVie is dealing with Humira's declining international sales caused by competition from biosimilars in Europe.
Johnson & Johnson is facing thousands of different product liability lawsuits. New Mexico just filed a lawsuit against Johnson & Johnson alleging that the company's claims about the safety of its baby powder were misleading. In October, Johnson & Johnson settled a lawsuit for $10 million with two Ohio counties that removed the company from the first federal lawsuit against opioid manufacturers. In addition to mounting legal troubles, Johnson & Johnson's competitive advantage is under pressure.
With that said, these pharma giants are hardly dead in the water, and there are several good reasons to consider purchasing shares of each. But which of the two should you buy today? Let's dig in a little deeper and find out.