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

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

Company Overview

ABBV’s market capitalization of 334.34 billion USD is substantially larger than EW’s 45.05 billion USD, indicating a significant difference in their market valuations.

EW carries a higher beta at 1.12, indicating it’s more sensitive to market moves, while ABBV (beta: 0.49) exhibits greater stability.

SymbolABBVEW
Company NameAbbVie Inc.Edwards Lifesciences Corporation
CountryUSUS
SectorHealthcareHealthcare
IndustryDrug Manufacturers - GeneralMedical - Devices
CEORobert A. Michael CPABernard J. Zovighian
Price189.28 USD76.79 USD
Market Cap334.34 billion USD45.05 billion USD
Beta0.491.12
ExchangeNYSENYSE
IPO DateJanuary 2, 2013March 27, 2000
ADRNoNo

Historical Performance

This chart compares the performance of ABBV and EW 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. EW: 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.

EW

49.04%

Medical - Devices Industry

Max
49.04%
Q3
9.53%
Median
-7.46%
Q1
-32.83%
Min
-82.64%

In the upper quartile for the Medical - Devices industry, EW’s Return on Equity of 49.04% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ABBV vs. EW: A comparison of their ROE against their respective Drug Manufacturers - General and Medical - Devices 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.

EW

11.40%

Medical - Devices Industry

Max
21.88%
Q3
6.63%
Median
-1.11%
Q1
-21.08%
Min
-51.95%

In the upper quartile for the Medical - Devices industry, EW’s Return on Invested Capital of 11.40% signifies a highly effective use of its capital to generate profits when compared to its peers.

ABBV vs. EW: A comparison of their ROIC against their respective Drug Manufacturers - General and Medical - Devices 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.

EW

75.48%

Medical - Devices Industry

Max
44.80%
Q3
9.77%
Median
-5.53%
Q1
-29.37%
Min
-87.68%

EW’s Net Profit Margin of 75.48% is exceptionally high, placing it well beyond the typical range for the Medical - Devices industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

ABBV vs. EW: A comparison of their Net Profit Margin against their respective Drug Manufacturers - General and Medical - Devices 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.

EW

26.75%

Medical - Devices Industry

Max
30.13%
Q3
13.12%
Median
3.47%
Q1
-24.42%
Min
-80.56%

An Operating Profit Margin of 26.75% places EW in the upper quartile for the Medical - Devices industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ABBV vs. EW: A comparison of their Operating Margin against their respective Drug Manufacturers - General and Medical - Devices industry benchmarks.

Profitability at a Glance

SymbolABBVEW
Return on Equity (TTM)95.59%49.04%
Return on Assets (TTM)3.08%32.02%
Return on Invested Capital (TTM)17.93%11.40%
Net Profit Margin (TTM)7.31%75.48%
Operating Profit Margin (TTM)28.31%26.75%
Gross Profit Margin (TTM)77.46%79.18%

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.

EW

4.18

Medical - Devices Industry

Max
12.68
Q3
6.30
Median
4.05
Q1
1.85
Min
0.01

EW’s Current Ratio of 4.18 aligns with the median group of the Medical - Devices industry, indicating that its short-term liquidity is in line with its sector peers.

ABBV vs. EW: A comparison of their Current Ratio against their respective Drug Manufacturers - General and Medical - Devices 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.

EW

0.07

Medical - Devices Industry

Max
2.34
Q3
1.09
Median
0.37
Q1
0.08
Min
0.00

Falling into the lower quartile for the Medical - Devices industry, EW’s Debt-to-Equity Ratio of 0.07 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ABBV vs. EW: A comparison of their D/E Ratio against their respective Drug Manufacturers - General and Medical - Devices 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.

EW

--

Medical - Devices Industry

Max
18.18
Q3
7.53
Median
0.85
Q1
-9.80
Min
-33.94

Interest Coverage Ratio data for EW is currently unavailable.

ABBV vs. EW: A comparison of their Interest Coverage against their respective Drug Manufacturers - General and Medical - Devices industry benchmarks.

Financial Strength at a Glance

SymbolABBVEW
Current Ratio (TTM)0.764.18
Quick Ratio (TTM)0.643.45
Debt-to-Equity Ratio (TTM)49.220.07
Debt-to-Asset Ratio (TTM)0.510.05
Net Debt-to-EBITDA Ratio (TTM)3.96-1.32
Interest Coverage Ratio (TTM)6.14--

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ABBV vs. EW: 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.

EW

0.00%

Medical - Devices Industry

Max
3.57%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

EW 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. EW: A comparison of their Dividend Yield against their respective Drug Manufacturers - General and Medical - Devices 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.

EW

0.00%

Medical - Devices Industry

Max
102.12%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

EW 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. EW: A comparison of their Payout Ratio against their respective Drug Manufacturers - General and Medical - Devices industry benchmarks.

Dividend at a Glance

SymbolABBVEW
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.

EW

10.78

Medical - Devices Industry

Max
90.56
Q3
56.92
Median
43.19
Q1
21.79
Min
5.55

In the lower quartile for the Medical - Devices industry, EW’s P/E Ratio of 10.78 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ABBV vs. EW: A comparison of their P/E Ratio against their respective Drug Manufacturers - General and Medical - Devices 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.

EW

0.86

Medical - Devices Industry

Max
6.56
Q3
3.52
Median
2.22
Q1
0.55
Min
0.03

EW’s Forward PEG Ratio of 0.86 is within the middle range of its peers in the Medical - Devices industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ABBV vs. EW: A comparison of their Forward PEG Ratio against their respective Drug Manufacturers - General and Medical - Devices 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.

EW

8.13

Medical - Devices Industry

Max
15.74
Q3
8.12
Median
3.40
Q1
2.37
Min
0.42

EW’s P/S Ratio of 8.13 is in the upper echelon for the Medical - Devices 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. EW: A comparison of their P/S Ratio against their respective Drug Manufacturers - General and Medical - Devices 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.

EW

4.51

Medical - Devices Industry

Max
16.65
Q3
8.03
Median
3.73
Q1
1.92
Min
0.65

EW’s P/B Ratio of 4.51 is within the conventional range for the Medical - Devices 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. EW: A comparison of their P/B Ratio against their respective Drug Manufacturers - General and Medical - Devices industry benchmarks.

Valuation at a Glance

SymbolABBVEW
Price-to-Earnings Ratio (P/E, TTM)79.7710.78
Forward PEG Ratio (TTM)7.210.86
Price-to-Sales Ratio (P/S, TTM)5.838.13
Price-to-Book Ratio (P/B, TTM)235.674.51
Price-to-Free Cash Flow Ratio (P/FCF, TTM)21.73155.38
EV-to-EBITDA (TTM)24.3924.10
EV-to-Sales (TTM)6.967.71