AbbVie vs. Bristol Myers Squibb: Faster Growth or Steady Revenue?

AbbVie: Consistent Upward Revenue Trajectory

AbbVie (NYSE:ABBV) primarily generates its revenue by developing advanced therapies across immunology, oncology, and neuroscience.

It completed the acquisition of Apogee Therapeutics to expand its dermatology and respiratory pipeline, and it secured regulatory approvals for multiple therapies in international markets.

Bristol Myers Squibb: Steady but Slower Revenue Growth

Bristol Myers Squibb (NYSE:BMY) primarily earns revenue through the worldwide commercialization of treatments for cancer, cardiovascular disease, and immunological conditions.

It secured accelerated regulatory approval for a combination therapy for multiple myeloma in the United States, while advancing construction plans for a new manufacturing campus and executing workforce reductions.

Why Revenue Matters for Investors

Revenue here refers to the data provider's standardized income statement revenue line item, and tracking this baseline financial metric helps investors assess a company's fundamental ability to generate commercial sales over time.

Quarterly Revenue for AbbVie and Bristol Myers Squibb

Foolish Take

Pharmaceutical stocks can be some of the best growth stocks to have in a portfolio, but there is a near-constant need to be developing new treatments that excite Wall Street as future revenue makers, given the time pressure of patent expiration that comes for every FDA treatment. Right now, Bristol Myers Squibb is working hard to convince investors it is building a broad base of future drugs that will diversify and power the business in coming years.

Bristol Myers Squibb has made positive strides, with its newer growth brands gaining traction and some interesting candidates in the pipeline. Management is telling analysts it aims to bring 10 new drugs to market by the end of the decade, an aggressive target given that 2027 is only a few months away.

The stock is cheap, which could be a plus on one side, but does reflect that the company hasn't convinced investors yet. Just look at the revenue trends in recent quarters and years. Bristol Myers Squibb's recovery timeline is hard to predict.

Revenue for the current fiscal year should edge up 3% to $49.9 billion, with a much healthier rise in net income of more than 40% to $11.2 billion.

AbbVie, for its part, just bought itself a chunk of immediate growth with its purchase of Apogee Therapeutics.

But AbbVie has also been executing on the same approach Bristol Myers is undertaking, creating a pipeline of internal treatments that should provide years of growth. Recent successes include immunology products Skyrizi and Rinvoq, and investors are hopeful that an FDA decision on a Parkinson's treatment later this year will bode well for the company. AbbVie is expected to see net income grow from $4.2 billion to $14.6 billion this year. Sales should grow to $67.2 billion.

AbbVie has a drug pipeline that some on Wall Street believe could include blockbusters (more than $1 billion in lifetime revenue) for treating schizophrenia, Parkinson's disease, psychosis from Alzheimer's, and certain solid tumors.

Investors seeking a turnaround play should consider Bristol Myers, but for most investors, AbbVie is the better option today.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Bristol Myers Squibb. The Motley Fool has a disclosure policy.