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

Company Overview

ABBV’s market capitalization of 334.13 billion USD is substantially larger than CNC’s 27.57 billion USD, indicating a significant difference in their market valuations.

With betas of 0.49 for ABBV and 0.46 for CNC, both stocks show similar sensitivity to overall market movements.

Performance Comparison

This chart compares the performance of ABBV and CNC over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of ABBV and CNC. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• ABBV’s Price-to-Earnings (P/E) ratio of 79.72 is very high. This often means that its current market price reflects high investor confidence in its future earnings potential, but it could also suggest the stock is expensive relative to its current earnings power.
• ABBV’s Price-to-Book (P/B) ratio of 235.52 is very high. This often indicates that the market values the company significantly above its net asset value, usually reflecting strong profitability, valuable intangible assets (like brand or patents), or high expectations for future growth.

Dividend Comparison

ABBV provides a 3.37% dividend yield, potentially offering a blend of income and growth, whereas CNC currently does not pay a dividend, possibly retaining profits to fund operations or growth initiatives.

Financial Strength Metrics Comparison

This section evaluates the financial strength of ABBV and CNC. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• ABBV’s current ratio of 0.76 is considered low. This may signal potential challenges with its short-term liquidity, implying that its current assets might offer a limited buffer for meeting its immediate debts and could affect its capacity to smoothly manage upcoming financial duties.
• ABBV’s Debt-to-Equity (D/E) ratio of 49.22 is very high. This indicates that the company is significantly financed by debt, which can amplify returns but also substantially increases its financial risk profile and vulnerability to earnings fluctuations.