AbbVie Inc. (ABBV) vs Pfizer Inc. (PFE)

AbbVie Inc. and Pfizer Inc. are both Drug Manufacturers General companies. AbbVie Inc. is the larger, with a market value of $509.5B against $170.3B — 3.0× the size. Pfizer Inc. trades at the lower P/E: 42.2× against 49.7×. AbbVie Inc. grew revenue faster over the last twelve months: 10.7% against 1.34%. AbbVie Inc. has the higher net margin (15.6% vs 6.34%) and the higher return on invested capital (20.2% vs 6.19%). Both pay a dividend; Pfizer Inc. yields more (7.18% vs 2.40%). Across the 22 metrics below, Pfizer Inc. leads on 12 and AbbVie Inc. on 10.

Valuation

Metric ABBV PFE Drug Manufacturers General median
P/E 49.70 42.17 26.57
P/S 7.74 2.68 3.49
P/B n/m 1.91 5.20
Price to free cash flow 27.07 15.54 21.34
EV/EBITDA 20.10 10.88 14.80
EV/Sales 8.80 3.44 4.09
Earnings yield 2.01% 2.37% 2.40%
Free cash flow yield 3.69% 6.43% 4.43%

Profitability

Metric ABBV PFE Drug Manufacturers General median
Gross margin 73.72% 73.38% 73.01%
Operating margin 32.16% 21.44% 18.34%
Net margin 15.61% 6.34% 7.31%
Free cash flow margin 28.59% 18.52% 18.52%
Return on equity (288.69%) 4.42% 5.80%
Return on assets 7.32% 1.95% 2.28%
Return on invested capital 20.23% 6.19% 6.26%

Growth

Metric ABBV PFE Drug Manufacturers General median
Revenue growth (TTM) 10.68% 1.34% 6.72%
EPS growth (last fiscal year) (1.26%) (3.55%) 21.81%
Revenue growth, 5-year CAGR 5.95% 8.48% 4.75%
Net income growth, 5-year CAGR (1.94%) (3.23%) 0.00%

Health

Metric ABBV PFE Drug Manufacturers General median
Debt to equity (17.83) 0.70 0.63
Current ratio 0.87 1.42 1.39
Net debt to EBITDA 2.59 2.46 1.15

Dividend

Metric ABBV PFE Drug Manufacturers General median
Dividend yield 2.40% 7.18% 2.31%
Payout ratio 1.19 3.05 0.59

Size

Metric ABBV PFE Drug Manufacturers General median
Market cap 509.50b 170.31b 131.21b

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