Pfizer Inc. (PFE): As Healthcare Demand Rises, So Will This Company’s Profits

Novartis AG (ADR) (NYSE:NVS) produces such drugs as Diovan, Lucentis, and Gleevac, but prescription drugs account for just 57% of the company’s sales. A substantial portion (18%) comes from the Alcon vision care product line, and generics and consumer products (22%). Novartis is the most “expensive” of the group at 14.1 times this year’s earnings and also pays a slightly lower yield of 2.96%. However, the company has perhaps the most diverse product line of the group, which is certainly worthy of consideration when valuing the company as an investment.

Final thoughts

Any one of these would make a great addition to a portfolio in need of healthcare exposure. Pfizer does lack diversification in its business (Prescription drugs and vaccines make up over 90% of the company’s revenue) but makes up for it with diversification within their drug portfolio. As the cheapest stock of the three, I give it a slight edge over the other two, but as I said, any of these should profit as healthcare demand increases in the coming years.

Matthew Frankel has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article As Healthcare Demand Rises, So Will This Company’s Profits originally appeared on Fool.com and is written by Matthew Frankel.

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