Which Is A Better Buy – Boston Scientific Stock Or Abbott?

We believe Boston Scientific stock (NYSE: BSX) will likely offer better returns over Abbott stock (NYSE: ABT) in the next three years. Boston Scientific
BSX
is trading at 5.5x revenues compared to 4.5x for Abbott. Investors have assigned a lower multiple to ABT due to a significant fall in its Diagnostics sales amid lower Covid-19 testing demand.

Interestingly, BSX has had a Sharpe Ratio of 0.5 since early 2017, which is lower than 0.6 for the S&P 500 Index over the same period. However, Abbott’s Sharpe Ratio of 0.7 fared better than the S&P500. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.