Seek Returns logo

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

Updated on

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

Company Profile

SymbolABBVBAC
Company NameAbbVie Inc.Bank of America Corporation
CountryUnited StatesUnited States
GICS SectorHealth CareFinancials
GICS IndustryBiotechnologyBanks
Market Capitalization369.48 billion USD358.13 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 2013February 21, 1973
Security TypeCommon StockCommon Stock

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.

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

Historical Performance at a Glance

SymbolABBVBAC
5-Day Price Return2.18%1.34%
13-Week Price Return12.62%8.00%
26-Week Price Return8.12%4.36%
52-Week Price Return6.24%21.88%
Month-to-Date Return10.65%2.28%
Year-to-Date Return17.70%10.01%
10-Day Avg. Volume4.64M32.33M
3-Month Avg. Volume6.39M39.90M
3-Month Volatility19.56%19.69%
Beta0.491.36

Profitability

Return on Equity (TTM)

ABBV

95.59%

Biotechnology Industry

Max
77.14%
Q3
10.76%
Median
-20.08%
Q1
-42.71%
Min
-119.20%

ABBV’s Return on Equity of 95.59% is exceptionally high, placing it well beyond the typical range for the Biotechnology industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

BAC

9.46%

Banks Industry

Max
26.37%
Q3
15.92%
Median
12.25%
Q1
8.69%
Min
0.15%

BAC’s Return on Equity of 9.46% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

ABBV vs. BAC: A comparison of their Return on Equity (TTM) against their respective Biotechnology and Banks industry benchmarks.

Net Profit Margin (TTM)

ABBV

6.45%

Biotechnology Industry

Max
59.44%
Q3
16.21%
Median
-11.49%
Q1
-167.42%
Min
-409.07%

ABBV’s Net Profit Margin of 6.45% is aligned with the median group of its peers in the Biotechnology industry. This indicates its ability to convert revenue into profit is typical for the sector.

BAC

30.16%

Banks Industry

Max
54.20%
Q3
35.70%
Median
28.97%
Q1
22.53%
Min
6.98%

BAC’s Net Profit Margin of 30.16% is aligned with the median group of its peers in the Banks industry. This indicates its ability to convert revenue into profit is typical for the sector.

ABBV vs. BAC: A comparison of their Net Profit Margin (TTM) against their respective Biotechnology and Banks industry benchmarks.

Operating Profit Margin (TTM)

ABBV

18.80%

Biotechnology Industry

Max
60.62%
Q3
20.76%
Median
-12.41%
Q1
-181.14%
Min
-482.02%

ABBV’s Operating Profit Margin of 18.80% is around the midpoint for the Biotechnology industry, indicating that its efficiency in managing core business operations is typical for the sector.

BAC

32.74%

Banks Industry

Max
63.35%
Q3
44.59%
Median
37.24%
Q1
28.25%
Min
13.37%

BAC’s Operating Profit Margin of 32.74% is around the midpoint for the Banks industry, indicating that its efficiency in managing core business operations is typical for the sector.

ABBV vs. BAC: A comparison of their Operating Profit Margin (TTM) against their respective Biotechnology and Banks industry benchmarks.

Profitability at a Glance

SymbolABBVBAC
Return on Equity (TTM)95.59%9.46%
Return on Assets (TTM)2.73%0.84%
Net Profit Margin (TTM)6.45%30.16%
Operating Profit Margin (TTM)18.80%32.74%
Gross Profit Margin (TTM)70.93%--

Financial Strength

Current Ratio (MRQ)

ABBV

0.74

Biotechnology Industry

Max
19.31
Q3
9.38
Median
4.54
Q1
2.45
Min
0.76

ABBV’s Current Ratio of 0.74 is notably low, falling beneath the typical range for the Biotechnology industry. This suggests a heightened liquidity risk and could indicate potential challenges in meeting its short-term obligations.

BAC

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ABBV vs. BAC: A comparison of their Current Ratio (MRQ) against their respective Biotechnology and Banks industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ABBV

49.22

Biotechnology Industry

Max
1.35
Q3
0.64
Median
0.09
Q1
0.00
Min
0.00

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

BAC

2.54

Banks Industry

Max
4.75
Q3
2.62
Median
1.02
Q1
0.39
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.

ABBV vs. BAC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Biotechnology and Banks industry benchmarks.

Interest Coverage Ratio (TTM)

ABBV

2.70

Biotechnology Industry

Max
72.37
Q3
1.91
Median
-7.81
Q1
-63.90
Min
-153.80

ABBV’s Interest Coverage Ratio of 2.70 is in the upper quartile for the Biotechnology industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

BAC

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.

ABBV vs. BAC: A comparison of their Interest Coverage Ratio (TTM) against their respective Biotechnology and Banks industry benchmarks.

Financial Strength at a Glance

SymbolABBVBAC
Current Ratio (MRQ)0.74--
Quick Ratio (MRQ)0.48--
Debt-to-Equity Ratio (MRQ)49.222.54
Interest Coverage Ratio (TTM)2.70--

Growth

Revenue Growth

ABBV vs. BAC: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ABBV vs. BAC: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ABBV

3.11%

Biotechnology Industry

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ABBV’s Dividend Yield of 3.11% is exceptionally high, placing it well above the typical range for the Biotechnology industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

BAC

2.66%

Banks Industry

Max
10.27%
Q3
5.83%
Median
3.81%
Q1
2.50%
Min
0.00%

BAC’s Dividend Yield of 2.66% is consistent with its peers in the Banks industry, providing a dividend return that is standard for its sector.

ABBV vs. BAC: A comparison of their Dividend Yield (TTM) against their respective Biotechnology and Banks industry benchmarks.

Dividend Payout Ratio (TTM)

ABBV

226.84%

Biotechnology Industry

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

At 226.84%, ABBV’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Biotechnology industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

BAC

33.91%

Banks Industry

Max
147.07%
Q3
80.55%
Median
54.40%
Q1
35.71%
Min
0.00%

BAC’s Dividend Payout Ratio of 33.91% is in the lower quartile for the Banks industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

ABBV vs. BAC: A comparison of their Dividend Payout Ratio (TTM) against their respective Biotechnology and Banks industry benchmarks.

Dividend at a Glance

SymbolABBVBAC
Dividend Yield (TTM)3.11%2.66%
Dividend Payout Ratio (TTM)226.84%33.91%

Valuation

Price-to-Earnings Ratio (TTM)

ABBV

96.80

Biotechnology Industry

Max
60.14
Q3
38.17
Median
29.01
Q1
15.12
Min
0.00

At 96.80, ABBV’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Biotechnology 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

12.73

Banks Industry

Max
20.05
Q3
12.65
Median
10.21
Q1
7.54
Min
2.74

A P/E Ratio of 12.73 places BAC in the upper quartile for the Banks industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ABBV vs. BAC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Biotechnology and Banks industry benchmarks.

Price-to-Sales Ratio (TTM)

ABBV

6.24

Biotechnology Industry

Max
76.98
Q3
36.53
Median
9.49
Q1
4.49
Min
0.00

ABBV’s P/S Ratio of 6.24 aligns with the market consensus for the Biotechnology industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

BAC

2.33

Banks Industry

Max
5.06
Q3
2.98
Median
2.24
Q1
1.59
Min
0.45

The P/S Ratio is often not a primary valuation tool in the Banks industry.

ABBV vs. BAC: A comparison of their Price-to-Sales Ratio (TTM) against their respective Biotechnology and Banks industry benchmarks.

Price-to-Book Ratio (MRQ)

ABBV

261.01

Biotechnology Industry

Max
20.53
Q3
9.76
Median
4.77
Q1
2.49
Min
0.59

At 261.01, ABBV’s P/B Ratio is at an extreme premium to the Biotechnology industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

BAC

1.17

Banks Industry

Max
2.18
Q3
1.36
Median
1.09
Q1
0.81
Min
0.20

BAC’s P/B Ratio of 1.17 is within the conventional range for the Banks 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.

ABBV vs. BAC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Biotechnology and Banks industry benchmarks.

Valuation at a Glance

SymbolABBVBAC
Price-to-Earnings Ratio (TTM)96.8012.73
Price-to-Sales Ratio (TTM)6.242.33
Price-to-Book Ratio (MRQ)261.011.17
Price-to-Free Cash Flow Ratio (TTM)19.978.12