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ABBV vs. AMZN: A Head-to-Head Stock Comparison

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Here’s a clear look at ABBV and AMZN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AMZN’s market capitalization of 2,371.81 billion USD is significantly greater than ABBV’s 334.34 billion USD, highlighting its more substantial market valuation.

AMZN carries a higher beta at 1.33, indicating it’s more sensitive to market moves, while ABBV (beta: 0.49) exhibits greater stability.

SymbolABBVAMZN
Company NameAbbVie Inc.Amazon.com, Inc.
CountryUSUS
SectorHealthcareConsumer Cyclical
IndustryDrug Manufacturers - GeneralSpecialty Retail
CEORobert A. Michael CPAAndrew R. Jassy
Price189.28 USD223.41 USD
Market Cap334.34 billion USD2,371.81 billion USD
Beta0.491.33
ExchangeNYSENASDAQ
IPO DateJanuary 2, 2013May 15, 1997
ADRNoNo

Historical Performance

This chart compares the performance of ABBV and AMZN by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ABBV vs. AMZN: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ABBV

95.59%

Drug Manufacturers - General Industry

Max
95.59%
Q3
76.92%
Median
30.71%
Q1
8.97%
Min
-14.85%

In the upper quartile for the Drug Manufacturers - General industry, ABBV’s Return on Equity of 95.59% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AMZN

24.26%

Specialty Retail Industry

Max
70.52%
Q3
29.03%
Median
10.90%
Q1
-7.86%
Min
-57.43%

AMZN’s Return on Equity of 24.26% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

ABBV vs. AMZN: A comparison of their ROE against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Return on Invested Capital

ABBV

17.93%

Drug Manufacturers - General Industry

Max
25.72%
Q3
17.89%
Median
11.47%
Q1
9.39%
Min
2.87%

In the upper quartile for the Drug Manufacturers - General industry, ABBV’s Return on Invested Capital of 17.93% signifies a highly effective use of its capital to generate profits when compared to its peers.

AMZN

13.10%

Specialty Retail Industry

Max
29.46%
Q3
13.75%
Median
8.05%
Q1
0.80%
Min
-17.95%

AMZN’s Return on Invested Capital of 13.10% is in line with the norm for the Specialty Retail industry, reflecting a standard level of efficiency in generating profits from its capital base.

ABBV vs. AMZN: A comparison of their ROIC against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Net Profit Margin

ABBV

7.31%

Drug Manufacturers - General Industry

Max
34.51%
Q3
23.04%
Median
14.73%
Q1
11.78%
Min
2.18%

Falling into the lower quartile for the Drug Manufacturers - General industry, ABBV’s Net Profit Margin of 7.31% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

AMZN

10.14%

Specialty Retail Industry

Max
19.78%
Q3
8.49%
Median
3.43%
Q1
-0.69%
Min
-9.88%

A Net Profit Margin of 10.14% places AMZN in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.

ABBV vs. AMZN: A comparison of their Net Profit Margin against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Operating Profit Margin

ABBV

28.31%

Drug Manufacturers - General Industry

Max
40.70%
Q3
28.90%
Median
23.41%
Q1
19.05%
Min
16.13%

ABBV’s Operating Profit Margin of 28.31% is around the midpoint for the Drug Manufacturers - General industry, indicating that its efficiency in managing core business operations is typical for the sector.

AMZN

11.02%

Specialty Retail Industry

Max
24.47%
Q3
11.10%
Median
5.85%
Q1
0.66%
Min
-12.62%

AMZN’s Operating Profit Margin of 11.02% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

ABBV vs. AMZN: A comparison of their Operating Margin against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Profitability at a Glance

SymbolABBVAMZN
Return on Equity (TTM)95.59%24.26%
Return on Assets (TTM)3.08%10.25%
Return on Invested Capital (TTM)17.93%13.10%
Net Profit Margin (TTM)7.31%10.14%
Operating Profit Margin (TTM)28.31%11.02%
Gross Profit Margin (TTM)77.46%49.16%

Financial Strength

Current Ratio

ABBV

0.76

Drug Manufacturers - General Industry

Max
1.67
Q3
1.37
Median
1.26
Q1
0.87
Min
0.39

ABBV’s Current Ratio of 0.76 falls into the lower quartile for the Drug Manufacturers - General industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AMZN

1.05

Specialty Retail Industry

Max
3.24
Q3
1.99
Median
1.42
Q1
1.02
Min
0.54

AMZN’s Current Ratio of 1.05 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.

ABBV vs. AMZN: A comparison of their Current Ratio against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Debt-to-Equity Ratio

ABBV

49.22

Drug Manufacturers - General Industry

Max
2.95
Q3
2.44
Median
0.86
Q1
0.68
Min
0.09

With a Debt-to-Equity Ratio of 49.22, ABBV operates with exceptionally high leverage compared to the Drug Manufacturers - General industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

AMZN

0.44

Specialty Retail Industry

Max
2.72
Q3
1.42
Median
0.87
Q1
0.35
Min
0.01

AMZN’s Debt-to-Equity Ratio of 0.44 is typical for the Specialty Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ABBV vs. AMZN: A comparison of their D/E Ratio against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Interest Coverage Ratio

ABBV

6.14

Drug Manufacturers - General Industry

Max
27.46
Q3
14.40
Median
7.80
Q1
4.07
Min
1.67

ABBV’s Interest Coverage Ratio of 6.14 is positioned comfortably within the norm for the Drug Manufacturers - General industry, indicating a standard and healthy capacity to cover its interest payments.

AMZN

31.13

Specialty Retail Industry

Max
37.34
Q3
17.19
Median
4.28
Q1
0.11
Min
-23.60

AMZN’s Interest Coverage Ratio of 31.13 is in the upper quartile for the Specialty Retail industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ABBV vs. AMZN: A comparison of their Interest Coverage against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Financial Strength at a Glance

SymbolABBVAMZN
Current Ratio (TTM)0.761.05
Quick Ratio (TTM)0.640.84
Debt-to-Equity Ratio (TTM)49.220.44
Debt-to-Asset Ratio (TTM)0.510.21
Net Debt-to-EBITDA Ratio (TTM)3.960.50
Interest Coverage Ratio (TTM)6.1431.13

Growth

The following charts compare key year-over-year (YoY) growth metrics for ABBV and AMZN. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ABBV vs. AMZN: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ABBV vs. AMZN: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ABBV vs. AMZN: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ABBV

3.37%

Drug Manufacturers - General Industry

Max
8.72%
Q3
4.10%
Median
3.34%
Q1
1.89%
Min
0.00%

ABBV’s Dividend Yield of 3.37% is consistent with its peers in the Drug Manufacturers - General industry, providing a dividend return that is standard for its sector.

AMZN

0.00%

Specialty Retail Industry

Max
5.54%
Q3
1.52%
Median
0.00%
Q1
0.00%
Min
0.00%

AMZN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ABBV vs. AMZN: A comparison of their Dividend Yield against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Dividend Payout Ratio

ABBV

266.46%

Drug Manufacturers - General Industry

Max
266.46%
Q3
78.91%
Median
60.27%
Q1
43.74%
Min
0.00%

ABBV’s Dividend Payout Ratio of 266.46% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.

AMZN

0.00%

Specialty Retail Industry

Max
177.64%
Q3
9.49%
Median
0.00%
Q1
0.00%
Min
0.00%

AMZN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ABBV vs. AMZN: A comparison of their Payout Ratio against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Dividend at a Glance

SymbolABBVAMZN
Dividend Yield (TTM)3.37%0.00%
Dividend Payout Ratio (TTM)266.46%0.00%

Valuation

Price-to-Earnings Ratio

ABBV

79.77

Drug Manufacturers - General Industry

Max
27.96
Q3
25.84
Median
18.32
Q1
16.65
Min
3.39

At 79.77, ABBV’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Drug Manufacturers - General industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

AMZN

35.92

Specialty Retail Industry

Max
81.45
Q3
42.51
Median
25.40
Q1
12.72
Min
1.88

AMZN’s P/E Ratio of 35.92 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ABBV vs. AMZN: A comparison of their P/E Ratio against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Forward P/E to Growth Ratio

ABBV

7.21

Drug Manufacturers - General Industry

Max
3.10
Q3
3.09
Median
2.72
Q1
2.18
Min
1.02

ABBV’s Forward PEG Ratio of 7.21 is exceptionally high for the Drug Manufacturers - General industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

AMZN

1.72

Specialty Retail Industry

Max
5.90
Q3
2.79
Median
1.76
Q1
0.69
Min
0.00

AMZN’s Forward PEG Ratio of 1.72 is within the middle range of its peers in the Specialty Retail industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ABBV vs. AMZN: A comparison of their Forward PEG Ratio against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Price-to-Sales Ratio

ABBV

5.83

Drug Manufacturers - General Industry

Max
6.47
Q3
4.47
Median
3.53
Q1
1.96
Min
0.41

ABBV’s P/S Ratio of 5.83 is in the upper echelon for the Drug Manufacturers - General industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

AMZN

3.65

Specialty Retail Industry

Max
5.26
Q3
2.60
Median
1.29
Q1
0.41
Min
0.06

AMZN’s P/S Ratio of 3.65 is in the upper echelon for the Specialty Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

ABBV vs. AMZN: A comparison of their P/S Ratio against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Price-to-Book Ratio

ABBV

235.67

Drug Manufacturers - General Industry

Max
7.80
Q3
7.80
Median
5.30
Q1
4.06
Min
1.08

The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.

AMZN

7.74

Specialty Retail Industry

Max
12.73
Q3
6.96
Median
3.28
Q1
1.42
Min
0.24

AMZN’s P/B Ratio of 7.74 is in the upper tier for the Specialty Retail industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ABBV vs. AMZN: A comparison of their P/B Ratio against their respective Drug Manufacturers - General and Specialty Retail industry benchmarks.

Valuation at a Glance

SymbolABBVAMZN
Price-to-Earnings Ratio (P/E, TTM)79.7735.92
Forward PEG Ratio (TTM)7.211.72
Price-to-Sales Ratio (P/S, TTM)5.833.65
Price-to-Book Ratio (P/B, TTM)235.677.74
Price-to-Free Cash Flow Ratio (P/FCF, TTM)21.73113.97
EV-to-EBITDA (TTM)24.3918.07
EV-to-Sales (TTM)6.963.75