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AbbVie Inc. (ABBV) vs Novartis AG (NVS)

AbbVie Inc. and Novartis AG are both Drug Manufacturers General companies. AbbVie Inc. is the larger, with a market value of $509.5B against $296.4B — 1.7× the size. Novartis AG trades at the lower P/E: 30.9× against 49.7×. AbbVie Inc. grew revenue faster over the last twelve months: 10.7% against 1.76%. Novartis AG has the higher net margin (17.5% vs 15.6%) and the lower return on invested capital (12.1% vs 20.2%). Both pay a dividend; Novartis AG yields more (2.93% vs 2.40%). Across the 22 metrics below, Novartis AG leads on 16 and AbbVie Inc. on 6.

Valuation

Metric ABBV NVS Drug Manufacturers General median
P/E 49.70 30.86 26.57
P/S 7.74 5.36 3.49
P/B n/m 8.18 5.20
Price to free cash flow 27.07 21.72 21.34
EV/EBITDA 20.10 15.57 14.80
EV/Sales 8.80 6.01 4.09
Earnings yield 2.01% 3.24% 2.40%
Free cash flow yield 3.69% 4.60% 4.43%

Profitability

Metric ABBV NVS Drug Manufacturers General median
Gross margin 73.72% 74.92% 73.01%
Operating margin 32.16% 25.18% 18.34%
Net margin 15.61% 17.49% 7.31%
Free cash flow margin 28.59% 24.66% 18.52%
Return on equity (288.69%) 24.37% 5.80%
Return on assets 7.32% 8.94% 2.28%
Return on invested capital 20.23% 12.05% 6.26%

Growth

Metric ABBV NVS Drug Manufacturers General median
Revenue growth (TTM) 10.68% 1.76% 6.72%
EPS growth (last fiscal year) (1.26%) 21.81% 21.81%
Revenue growth, 5-year CAGR 5.95% 2.58% 4.75%
Net income growth, 5-year CAGR (1.94%) 11.62% 0.00%

Health

Metric ABBV NVS Drug Manufacturers General median
Debt to equity (17.83) 1.23 0.63
Current ratio 0.87 0.88 1.39
Net debt to EBITDA 2.59 0.96 1.15

Dividend

Metric ABBV NVS Drug Manufacturers General median
Dividend yield 2.40% 2.93% 2.31%
Payout ratio 1.19 0.91 0.59

Size

Metric ABBV NVS Drug Manufacturers General median
Market cap 509.50b 296.42b 131.21b

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