How Does AbbVie Stock Stack Up Against Its Peers?

ABBV: AbbVie logo
ABBV
AbbVie

AbbVie‘s stock has shown solid returns over the past year, but how does it truly measure up against peers in a dynamic pharmaceutical landscape? A closer look reveals strong free cash flow generation and solid revenue growth, yet profitability lags top-tier rivals. Its premium valuation also suggests limited upside if market sentiment shifts from its current growth drivers.

  • ABBV’s 24.1% operating margin, high yet trailing LLY (43.0%), reflects Humira biosimilar erosion versus LLY’s new product success.
  • ABBV’s 7.4% revenue growth, outpacing peers but lagging LLY, signifies new drug (Skyrizi/Rinvoq) offset versus Humira erosion.
  • ABBV’s 25.7% stock gain, with 163.1 PE, trails LLY’s stronger returns, reflecting LLY’s GLP-1 drug pipeline excitement.

Here’s how AbbVie stacks up across size, valuation, and profitability versus key peers.

  ABBV JNJ PFE MRK BMY LLY
Market Cap ($ Bil) 389.5 492.0 143.1 268.1 108.0 935.2
Revenue ($ Bil) 59.6 92.1 62.8 64.2 48.0 53.3
PE Ratio 163.1 19.6 14.6 14.1 17.9 67.8
LTM Revenue Growth 7.4% 5.1% 3.9% 1.7% 1.3% 36.8%
LTM Operating Margin 24.1% 26.2% 24.6% 34.9% 23.8% 43.0%
LTM FCF Margin 33.0% 20.3% 16.5% 20.3% 31.9% -0.1%
12M Market Return 25.7% 46.0% 1.5% 12.4% -1.5% 34.2%

For more details on AbbVie, read Buy or Sell ABBV Stock. Below we compare ABBV’s growth, margin, and valuation with peers across years

Revenue Growth Comparison

Relevant Articles
  1. Can LRCX Stock Live Up To Its Multiple?
  2. LRCX Stock: The Math Behind The Upside
  3. Under The Hood: The Real Range Wall Street Is Pricing For PANW
  4. Figma’s Earnings Just Flipped the Narrative
  5. The Path to $160: The Upside Case for Walmart
  6. POET Stock Doubled In Days. Can The Rally Last?

  LTM 2024 2023 2022
ABBV 7.4% 3.7% -6.4% 3.3%
JNJ 5.1% 4.3% 6.5% 1.6%
PFE 3.9% 6.8% -41.1% 24.5%
MRK 1.7% 6.7% 1.4% 21.7%
BMY 1.3% 7.3% -2.5% -0.5%
LLY 36.8% 32.0% 19.6% 0.8%

Operating Margin Comparison

  LTM 2024 2023 2022
ABBV 24.1% 21.1% 24.9% 32.4%
JNJ 26.2% 24.9% 27.5% 26.3%
PFE 24.6% 23.3% 7.1% 36.7%
MRK 34.9% 31.5% 4.9% 30.8%
BMY 23.8% 12.2% 18.2% 19.7%
LLY 43.0% 38.9% 31.6% 30.3%

PE Ratio Comparison

  LTM 2024 2023 2022
ABBV 163.1 94.5 64.6 23.2
JNJ 19.6 35.4 10.4 22.9
PFE 14.6 17.6 70.7 5.1
MRK 14.1 15.6 691.5 19.0
BMY 17.9 -12.2 14.6 17.3
LLY 67.8 91.4 132.6 84.2

Still not sure about ABBV stock? Consider portfolio approach.

The Right Way To Invest Is Through Portfolios

Individual stocks are unpredictable. A smart portfolio keeps you invested, limits downside shocks, and provides upside exposure

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.