ABBV vs. BAC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABBV and BAC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ABBV’s market capitalization stands at 334.34 billion USD, while BAC’s is 368.53 billion USD, indicating their market valuations are broadly comparable.
BAC carries a higher beta at 1.31, indicating it’s more sensitive to market moves, while ABBV (beta: 0.49) exhibits greater stability.
| Symbol | ABBV | BAC |
|---|---|---|
| Company Name | AbbVie Inc. | Bank of America Corporation |
| Country | US | US |
| Sector | Healthcare | Financial Services |
| Industry | Drug Manufacturers - General | Banks - Diversified |
| CEO | Robert A. Michael CPA | Brian Thomas Moynihan |
| Price | 189.28 USD | 48.93 USD |
| Market Cap | 334.34 billion USD | 368.53 billion USD |
| Beta | 0.49 | 1.31 |
| Exchange | NYSE | NYSE |
| IPO Date | January 2, 2013 | February 21, 1973 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ABBV and BAC 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.
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.
BAC
9.43%
Banks - Diversified Industry
- Max
- 20.93%
- Q3
- 14.73%
- Median
- 12.33%
- Q1
- 9.14%
- Min
- 5.86%
BAC’s Return on Equity of 9.43% is on par with the norm for the Banks - Diversified industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
BAC
2.22%
Banks - Diversified Industry
- Max
- 4.52%
- Q3
- 2.95%
- Median
- 1.89%
- Q1
- 0.86%
- Min
- 0.18%
Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified industry.
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.
BAC
14.56%
Banks - Diversified Industry
- Max
- 33.40%
- Q3
- 26.40%
- Median
- 19.24%
- Q1
- 14.99%
- Min
- 7.95%
Falling into the lower quartile for the Banks - Diversified industry, BAC’s Net Profit Margin of 14.56% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
BAC
15.73%
Banks - Diversified Industry
- Max
- 50.90%
- Q3
- 37.76%
- Median
- 28.44%
- Q1
- 15.73%
- Min
- 8.60%
BAC’s Operating Profit Margin of 15.73% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ABBV | BAC |
|---|---|---|
| Return on Equity (TTM) | 95.59% | 9.43% |
| Return on Assets (TTM) | 3.08% | 0.83% |
| Return on Invested Capital (TTM) | 17.93% | 2.22% |
| Net Profit Margin (TTM) | 7.31% | 14.56% |
| Operating Profit Margin (TTM) | 28.31% | 15.73% |
| Gross Profit Margin (TTM) | 77.46% | 50.93% |
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.
BAC
0.50
Banks - Diversified Industry
- Max
- 0.67
- Q3
- 0.49
- Median
- 0.39
- Q1
- 0.28
- Min
- 0.06
For the Banks - Diversified industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
BAC
2.44
Banks - Diversified Industry
- Max
- 4.98
- Q3
- 3.65
- Median
- 3.13
- Q1
- 1.73
- Min
- 0.09
BAC’s Debt-to-Equity Ratio of 2.44 is typical for the Banks - Diversified industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
BAC
0.34
Banks - Diversified Industry
- Max
- 0.98
- Q3
- 0.78
- Median
- 0.55
- Q1
- 0.31
- Min
- 0.09
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Diversified industry.
Financial Strength at a Glance
| Symbol | ABBV | BAC |
|---|---|---|
| Current Ratio (TTM) | 0.76 | 0.50 |
| Quick Ratio (TTM) | 0.64 | 0.50 |
| Debt-to-Equity Ratio (TTM) | 49.22 | 2.44 |
| Debt-to-Asset Ratio (TTM) | 0.51 | 0.22 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.96 | 13.64 |
| Interest Coverage Ratio (TTM) | 6.14 | 0.34 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABBV and BAC. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
BAC
2.13%
Banks - Diversified Industry
- Max
- 7.73%
- Q3
- 4.16%
- Median
- 3.24%
- Q1
- 2.27%
- Min
- 0.00%
BAC’s Dividend Yield of 2.13% is in the lower quartile for the Banks - Diversified industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
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.
BAC
34.24%
Banks - Diversified Industry
- Max
- 84.94%
- Q3
- 39.11%
- Median
- 26.91%
- Q1
- 0.00%
- Min
- 0.00%
BAC’s Dividend Payout Ratio of 34.24% is within the typical range for the Banks - Diversified industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ABBV | BAC |
|---|---|---|
| Dividend Yield (TTM) | 3.37% | 2.13% |
| Dividend Payout Ratio (TTM) | 266.46% | 34.24% |
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.
BAC
13.49
Banks - Diversified Industry
- Max
- 14.13
- Q3
- 13.37
- Median
- 11.90
- Q1
- 9.29
- Min
- 7.43
A P/E Ratio of 13.49 places BAC in the upper quartile for the Banks - Diversified industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
BAC
0.90
Banks - Diversified Industry
- Max
- 1.98
- Q3
- 1.41
- Median
- 1.15
- Q1
- 0.77
- Min
- 0.45
BAC’s Forward PEG Ratio of 0.90 is within the middle range of its peers in the Banks - Diversified industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
BAC
1.93
Banks - Diversified Industry
- Max
- 4.15
- Q3
- 2.92
- Median
- 2.29
- Q1
- 1.83
- Min
- 0.94
The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.
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.
BAC
1.27
Banks - Diversified Industry
- Max
- 1.89
- Q3
- 1.47
- Median
- 1.23
- Q1
- 1.10
- Min
- 0.65
BAC’s P/B Ratio of 1.27 is within the conventional range for the Banks - Diversified industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ABBV | BAC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 79.77 | 13.49 |
| Forward PEG Ratio (TTM) | 7.21 | 0.90 |
| Price-to-Sales Ratio (P/S, TTM) | 5.83 | 1.93 |
| Price-to-Book Ratio (P/B, TTM) | 235.67 | 1.27 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 21.73 | 81.00 |
| EV-to-EBITDA (TTM) | 24.39 | 25.04 |
| EV-to-Sales (TTM) | 6.96 | 4.23 |