Investing in Healthcare: Top 7 Companies
Now the world economy is in the process of recovery. Historically, the health sector does not grow well during such periods, although medicine is considered one of the basic services that people will not give up. On the other hand, the sector looks cheap and analysts from Citi believe that it can make good money in the near future.
Here are 7 of the world’s largest companies in the healthcare sector – from the largest capitalization to the smallest.
UnitedHealth Group (UNH)
UnitedHealth Group (UNH) is the largest US health insurance company. The company serves about 100 million customers. Despite costs related to COVID-19 patient coverage, the company’s profits jumped 11.3% in 2020 as people generally used healthcare services less frequently during self-isolation.
UnitedHealth Group (UNH) is ranked fifth on the Fortune 500 with $257.1 billion in revenue.
- Capitalization: 423.3 billion dollars
- P/E Ratio: 27.3
Johnson & Johnson (JNJ)
Johnson & Johnson (JNJ) is an American holding company with 135 years of history. The company unites more than 250 subsidiaries around the world producing medicines, sanitary products and medical equipment. Johnson & Johnson is the developer of one of the first three COVID-19 vaccines approved in the US.
Johnson & Johnson has annual revenues of $82.6 billion, ranking it 36th on the Fortune 500 list of US companies with the largest revenues.
- Capitalization: 417.9 billion dollars
- P/E Ratio: 23.8
This pharmaceutical company produces a wide range of medicines, including the world-famous Viagra.
And the launch of one of the most popular coronavirus vaccines is projected to provide the company with an additional $21.5 billion in 2021, $8.6 billion in 2022 and $1.95 billion in 2023.
Pfizer ranks 77th in the Fortune 500 with $41.9 billion in revenue.
- Capitalization: 306.7 billion dollars
- P/E Ratio: 16.3
Thermo Fisher (TMO)
Thermo Fisher (TMO) is an American manufacturer of laboratory equipment, diagnostic tools and consumables for medicine. The company’s staff is more than 50,000 people.
The company is ranked 95th on the Fortune 500 with $32.3 billion in revenue.
- Capitalization: 252.3 billion dollars
- P/E Ratio: 29.6
Eli Lilly and Company (LLY)
American pharmaceutical giant founded in 1876. Launched several revolutionary drugs on the market, including the first commercially available insulin for people with diabetes, and the antidepressant Prozac.
The company has become a beneficiary in the situation with coronavirus: its drug Bamlanivimab is actively used in the treatment of COVID-19.
Eli Lilly and Company (LLY) is ranked 118th on the Fortune 500 list with $24.5 billion in revenue.
- Capitalization: 249.7 billion dollars
- P/E Ratio: 39.8
Danaher (DHR) manufactures medical and industrial equipment, as well as provides commercial and marketing services.
The company also sells diagnostic tests for COVID-19 and makes good profits from them.
Danaher (DHR) ranks 130th on the Fortune 500 with $22.3 billion in revenue.
- Capitalization: $230.4 billion
- P/E Ratio: 41.8
Abbott Laboratories (ABT)
Abbott Laboratories is an American health care company since 1888. It produces medicines and medical equipment.
Since the start of the pandemic, the company has developed 12 different coronavirus tests, including the popular BinaxNow, a $5, 15-minute rapid test. But in June 2021, the company announced a decrease in demand for diagnostics, as the number of people vaccinated increased.
Abbott Laboratories (ABT) is ranked 89th on the Fortune 500 list with $34.6 billion in revenue.
- Capitalization: 224 billion dollars
- P/E Ratio: 31