AbbVie Inc. (ABBV) vs Johnson & Johnson (JNJ)

AbbVie Inc. and Johnson & Johnson are both Drug Manufacturers General companies. Johnson & Johnson is the larger, with a market value of $652.8B against $467.4B — 1.4× the size. Johnson & Johnson trades at the lower P/E: 31.4× against 74.7×. AbbVie Inc. grew revenue faster over the last twelve months: 10.4% against 8.06%. Johnson & Johnson has the higher net margin (21.5% vs 9.74%) and the lower return on invested capital (15.5% vs 18.1%). Both pay a dividend; AbbVie Inc. yields more (3.57% vs 3.07%). Across the 22 metrics below, Johnson & Johnson leads on 13 and AbbVie Inc. on 9.

Valuation

Metric ABBV JNJ Drug Manufacturers General median
P/E 74.67 31.43 24.72
P/S 7.26 6.67 3.35
P/B n/m 7.68 5.00
Price to free cash flow 25.68 28.73 17.68
EV/EBITDA 20.79 19.20 13.91
EV/Sales 8.26 6.84 3.95
Earnings yield 1.34% 3.18% 2.92%
Free cash flow yield 3.89% 3.48% 4.42%

Profitability

Metric ABBV JNJ Drug Manufacturers General median
Gross margin 71.48% 67.91% 72.77%
Operating margin 26.20% 27.69% 18.90%
Net margin 9.74% 21.48% 8.27%
Free cash flow margin 28.28% 23.20% 17.25%
Return on equity (208.10%) 25.74% 6.97%
Return on assets 4.61% 10.67% 2.76%
Return on invested capital 18.07% 15.51% 6.30%

Growth

Metric ABBV JNJ Drug Manufacturers General median
Revenue growth (TTM) 10.39% 8.06% 6.79%
EPS growth (last fiscal year) (1.26%) 90.50% —
Revenue growth, 5-year CAGR 5.95% 2.67% 3.98%
Net income growth, 5-year CAGR (1.94%) 12.74% 0.42%

Health

Metric ABBV JNJ Drug Manufacturers General median
Debt to equity (12.03) 0.44 0.63
Current ratio 0.81 1.09 1.32
Net debt to EBITDA 2.59 0.46 1.15

Dividend

Metric ABBV JNJ Drug Manufacturers General median
Dividend yield 3.57% 3.07% 3.57%
Payout ratio 1.19 0.93 0.53

Size

Metric ABBV JNJ Drug Manufacturers General median
Market cap 467.37b 652.82b 125.91b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack