AbbVie Inc. (ABBV) vs Gilead Sciences, Inc. (GILD)

AbbVie Inc. and Gilead Sciences, Inc. are both Drug Manufacturers General companies. AbbVie Inc. is the larger, with a market value of $509.5B against $207.8B — 2.5× the size. Gilead Sciences, Inc. has negative trailing earnings, so its P/E is not meaningful; AbbVie Inc. trades at 49.7×. AbbVie Inc. grew revenue faster over the last twelve months: 10.7% against 6.54%. AbbVie Inc. has the higher net margin (15.6% vs −12.5%) and the higher return on invested capital (20.2% vs −4.51%). Both pay a dividend; AbbVie Inc. yields more (2.40% vs 1.94%). Across the 21 metrics below, Gilead Sciences, Inc. leads on 11 and AbbVie Inc. on 10.

Valuation

Metric ABBV GILD Drug Manufacturers General median
P/E 49.70 n/m 26.57
P/S 7.74 6.71 3.49
P/B n/m 16.06 5.20
Price to free cash flow 27.07 15.09 21.34
EV/EBITDA 20.10 505.05 14.80
EV/Sales 8.80 7.35 4.09
Earnings yield 2.01% (1.85%) 2.40%
Free cash flow yield 3.69% 6.63% 4.43%

Profitability

Metric ABBV GILD Drug Manufacturers General median
Gross margin 73.72% 79.93% 73.01%
Operating margin 32.16% (7.63%) 18.34%
Net margin 15.61% (12.47%) 7.31%
Free cash flow margin 28.59% 44.47% 18.52%
Return on equity (288.69%) (22.45%) 5.80%
Return on assets 7.32% (7.03%) 2.28%
Return on invested capital 20.23% (4.51%) 6.26%

Growth

Metric ABBV GILD Drug Manufacturers General median
Revenue growth (TTM) 10.68% 6.54% 6.72%
EPS growth (last fiscal year) (1.26%) 1,684.21% 21.81%
Revenue growth, 5-year CAGR 5.95% 3.58% 4.75%
Net income growth, 5-year CAGR (1.94%) 133.35% 0.00%

Health

Metric ABBV GILD Drug Manufacturers General median
Debt to equity (17.83) 2.02 0.63
Current ratio 0.87 1.38 1.39
Net debt to EBITDA 2.59 1.35 1.15

Dividend

Metric ABBV GILD Drug Manufacturers General median
Dividend yield 2.40% 1.94% 2.31%
Payout ratio 1.19 — 0.59

Size

Metric ABBV GILD Drug Manufacturers General median
Market cap 509.50b 207.84b 131.21b

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