Critical Contrast: Abbott Laboratories (NYSE:ABT) vs. American Bio Medica (OTCMKTS:ABMC)

American Bio Medica (OTCMKTS:ABMC) and Abbott Laboratories (NYSE:ABT) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares American Bio Medica and Abbott Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Bio Medica	N/A	N/A	N/A
Abbott Laboratories	14.72%	17.94%	10.86%

Analyst Ratings

This is a summary of recent ratings and recommmendations for American Bio Medica and Abbott Laboratories, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Bio Medica	0	0	0	0	0.00
Abbott Laboratories	0	4	16	2	2.91

Abbott Laboratories has a consensus target price of $137.05, suggesting a potential upside of 26.31%. Given Abbott Laboratories’ stronger consensus rating and higher probable upside, analysts plainly believe Abbott Laboratories is more favorable than American Bio Medica.

Institutional and Insider Ownership

75.2% of Abbott Laboratories shares are owned by institutional investors. 3.1% of American Bio Medica shares are owned by insiders. Comparatively, 0.5% of Abbott Laboratories shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares American Bio Medica and Abbott Laboratories”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Bio Medica	N/A	N/A	N/A	N/A	N/A
Abbott Laboratories	$44.33 billion	4.26	$6.52 billion	$3.72	29.17

Abbott Laboratories has higher revenue and earnings than American Bio Medica.

Summary

Abbott Laboratories beats American Bio Medica on 9 of the 10 factors compared between the two stocks.

About American Bio Medica

American Bio Medica Corporation engages in manufacture and sale of lateral flow immunoassay tests primarily for the immediate detection of drugs in urine and oral fluids. Its drugs detection products in urine include Rapid Drug Screen, a rapid drug test, which detects the presence or absence of 2 to 10 drugs; RDS InCup, a drug-testing cup that detects the presence or absence of 1 to 12 drugs; Rapid TOX, a drug test in a cassette platform, which detects the presence or absence of 1 to 10 drugs; and Rapid TOX Cup II, a drug testing cup that detects the presence or absence of 1 to 16 drugs. The company also offers a test for the detection of respiratory syncytial virus; OralStat, a drug test for the detection of drugs in oral fluids, as well as private labeled versions of OralStat. In addition, the company distributes other products for the detection of substances of abuse, as well as products to detect certain infectious diseases. Further, it provides strip contract manufacturing, assembly, and packaging services to unaffiliated diagnostic companies. The company serves rehabilitation/drug treatment, pain management, other clinical, government, and employment/workplace markets. It operates in the United States, North America, Europe, the Asia Pacific, and South America. The company was formerly known as American Micro Media, Inc. and changed its name to American Bio Medica Corporation in September 1992. American Bio Medica Corporation was incorporated in 1986 and is based in Kinderhook, New York.

About Abbott Laboratories

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière’s disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also offers laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for laboratories. In addition, the company provides pediatric and adult nutritional products; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.