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 $610.4B against $500.8B — 1.2× the size. Johnson & Johnson trades at the lower P/E: 29.6× against 80.6×. AbbVie Inc. grew revenue faster over the last twelve months: 10.4% against 7.80%. Johnson & Johnson has the higher net margin (16.2% vs 9.74%) and the lower return on invested capital (0.00% vs 18.1%). Both pay a dividend; AbbVie Inc. yields more (2.42% vs 2.07%). 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 80.63 29.61 24.54
P/S 7.84 6.19 3.39
P/B n/m 7.24 5.00
Price to free cash flow 27.73 27.07 16.55
EV/EBITDA 22.25 18.12 13.82
EV/Sales 8.84 6.36 4.03
Earnings yield 1.24% 3.38% 2.98%
Free cash flow yield 3.61% 3.69% 4.46%

Profitability

Metric ABBV JNJ Drug Manufacturers General median
Gross margin 71.48% 67.56% 72.77%
Operating margin 26.20% 19.29% 18.77%
Net margin 9.74% 16.20% 8.27%
Free cash flow margin 28.28% 0.00% 17.18%
Return on equity (208.10%) 0.00% 5.87%
Return on assets 4.61% 0.00% 2.57%
Return on invested capital 18.07% 0.00% 6.11%

Growth

Metric ABBV JNJ Drug Manufacturers General median
Revenue growth (TTM) 10.39% 7.80% 6.66%
EPS growth (last fiscal year) (1.26%) 90.50% 21.81%
Revenue growth, 5-year CAGR 5.95% 2.67% 4.75%
Net income growth, 5-year CAGR (1.94%) 12.74% 0.00%

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 2.42% 2.07% 2.33%
Payout ratio 1.95 0.80 0.59

Size

Metric ABBV JNJ Drug Manufacturers General median
Market cap 500.80b 610.38b 123.73b

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