Seek Returns logo

Command Palette

Search for a command to run...

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

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

Company Profile

SymbolABBVJNJ
Company NameAbbVie Inc.Johnson & Johnson
CountryUnited StatesUnited States
GICS SectorHealth CareHealth Care
GICS Industry GroupPharmaceuticals, Biotechnology & Life SciencesPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnologyPharmaceuticals
GICS Sub-IndustryBiotechnologyPharmaceuticals
Market Capitalization370.38 billion USD579.46 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 2013January 2, 1962
Security TypeCommon StockCommon Stock

JNJ's market capitalization (579.46 billion USD) is significantly greater than ABBV's (370.38 billion USD), highlighting its more substantial market valuation.

Historical Performance

This chart compares the performance of ABBV and JNJ 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. JNJ: Growth of a $10,000 investment over the past five years.

Historical Performance at a Glance

SymbolABBVJNJ
5-Day Price Return2.18%2.14%
13-Week Price Return-8.47%16.85%
26-Week Price Return-5.93%38.02%
52-Week Price Return3.30%47.40%
Month-to-Date Return-9.77%-3.21%
Year-to-Date Return-8.35%16.19%
10-Day Avg. Volume8.26M8.19M
3-Month Avg. Volume6.71M8.96M
3-Month Volatility26.74%15.82%
Beta0.390.35

With betas of 0.39 for ABBV and 0.35 for JNJ, both stocks show similar sensitivity to overall market movements.

Profitability

Return on Equity (TTM)

ABBV

95.59%

Biotechnology Industry

Max
101.12%
Q3
11.08%
Median
-15.69%
Q1
-55.52%
Min
-145.91%

In the upper quartile for the Biotechnology 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.

JNJ

33.78%

Pharmaceuticals Industry

Max
39.28%
Q3
20.27%
Median
12.92%
Q1
6.34%
Min
-14.55%

In the upper quartile for the Pharmaceuticals industry, JNJ's Return on Equity of 33.78% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

Net Profit Margin (TTM)

ABBV

6.91%

Biotechnology Industry

Max
72.56%
Q3
21.77%
Median
-0.66%
Q1
-144.38%
Min
-310.18%

ABBV's Net Profit Margin of 6.91% 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.

JNJ

28.46%

Pharmaceuticals Industry

Max
41.87%
Q3
22.21%
Median
14.64%
Q1
9.09%
Min
-8.35%

A Net Profit Margin of 28.46% places JNJ in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

ABBV

24.65%

Biotechnology Industry

Max
75.52%
Q3
24.88%
Median
2.65%
Q1
-148.74%
Min
-343.63%

ABBV's Operating Profit Margin of 24.65% is around the midpoint for the Biotechnology industry, indicating that its efficiency in managing core business operations is typical for the sector.

JNJ

34.59%

Pharmaceuticals Industry

Max
42.93%
Q3
25.68%
Median
18.69%
Q1
12.70%
Min
-4.35%

An Operating Profit Margin of 34.59% places JNJ in the upper quartile for the Pharmaceuticals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolABBVJNJ
Return on Equity (TTM)95.59%33.78%
Return on Assets (TTM)3.12%13.76%
Net Profit Margin (TTM)6.91%28.46%
Operating Profit Margin (TTM)24.65%34.59%
Gross Profit Margin (TTM)71.62%67.92%

Financial Strength

Current Ratio (MRQ)

ABBV

0.67

Biotechnology Industry

Max
20.15
Q3
9.97
Median
4.17
Q1
2.51
Min
0.67

ABBV's Current Ratio of 0.67 falls into the lower quartile for the Biotechnology industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

JNJ

1.03

Pharmaceuticals Industry

Max
6.79
Q3
3.64
Median
2.17
Q1
1.38
Min
0.80

JNJ's Current Ratio of 1.03 falls into the lower quartile for the Pharmaceuticals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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

Debt-to-Equity Ratio (MRQ)

ABBV

49.22

Biotechnology Industry

Max
2.26
Q3
0.93
Median
0.15
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.

JNJ

0.59

Pharmaceuticals Industry

Max
1.60
Q3
0.76
Median
0.28
Q1
0.03
Min
0.00

JNJ's Debt-to-Equity Ratio of 0.59 is typical for the Pharmaceuticals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

ABBV

3.46

Biotechnology Industry

Max
72.37
Q3
3.30
Median
-6.74
Q1
-60.90
Min
-132.16

ABBV's Interest Coverage Ratio of 3.46 is in the upper quartile for the Biotechnology industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

JNJ

34.01

Pharmaceuticals Industry

Max
154.61
Q3
67.33
Median
13.25
Q1
2.96
Min
-27.02

JNJ's Interest Coverage Ratio of 34.01 is positioned comfortably within the norm for the Pharmaceuticals industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolABBVJNJ
Current Ratio (MRQ)0.671.03
Quick Ratio (MRQ)0.410.69
Debt-to-Equity Ratio (MRQ)49.220.59
Interest Coverage Ratio (TTM)3.4634.01

Growth

Revenue Growth

ABBV vs. JNJ: A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolABBVJNJ
Revenue Growth (MRQ vs Prior YoY)10.04%9.08%
Revenue Growth (TTM vs Prior YoY)8.57%6.05%
3-Year Revenue CAGR1.75%5.60%
5-Year Revenue CAGR5.95%2.67%

EPS Growth

ABBV vs. JNJ: A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolABBVJNJ
EPS Growth (MRQ vs Prior YoY)--48.50%
EPS Growth (TTM vs Prior YoY)-1.30%90.56%
3-Year EPS CAGR-28.99%17.88%
5-Year EPS CAGR-2.88%14.90%

Dividend

Dividend Yield (TTM)

ABBV

3.15%

Biotechnology Industry

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

ABBV's Dividend Yield of 3.15% 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.

JNJ

2.14%

Pharmaceuticals Industry

Max
6.35%
Q3
3.00%
Median
1.84%
Q1
0.00%
Min
0.00%

JNJ's Dividend Yield of 2.14% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

ABBV

275.84%

Biotechnology Industry

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

ABBV's Dividend Payout Ratio of 275.84% 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.

JNJ

46.19%

Pharmaceuticals Industry

Max
188.03%
Q3
80.63%
Median
44.08%
Q1
0.00%
Min
0.00%

JNJ's Dividend Payout Ratio of 46.19% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolABBVJNJ
Dividend Yield (TTM)3.15%2.14%
Dividend Payout Ratio (TTM)275.84%46.19%

Valuation

Price-to-Earnings Ratio (TTM)

ABBV

87.61

Biotechnology Industry

Max
59.34
Q3
34.73
Median
21.91
Q1
13.45
Min
3.00

At 87.61, 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.

JNJ

21.62

Pharmaceuticals Industry

Max
40.21
Q3
26.28
Median
18.77
Q1
14.14
Min
3.46

JNJ's P/E Ratio of 21.62 is within the middle range for the Pharmaceuticals 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. JNJ: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Price-to-Sales Ratio (TTM)

ABBV

6.05

Biotechnology Industry

Max
51.65
Q3
27.19
Median
8.05
Q1
4.32
Min
0.71

ABBV's P/S Ratio of 6.05 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.

JNJ

6.15

Pharmaceuticals Industry

Max
7.19
Q3
4.85
Median
2.51
Q1
1.94
Min
0.83

JNJ's P/S Ratio of 6.15 is in the upper echelon for the Pharmaceuticals 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. JNJ: A comparison of their Price-to-Sales Ratio (TTM) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Price-to-Book Ratio (MRQ)

ABBV

261.01

Biotechnology Industry

Max
21.94
Q3
10.66
Median
5.20
Q1
3.08
Min
0.57

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.

JNJ

6.13

Pharmaceuticals Industry

Max
10.12
Q3
5.02
Median
2.39
Q1
1.54
Min
0.63

JNJ's P/B Ratio of 6.13 is in the upper tier for the Pharmaceuticals 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. JNJ: A comparison of their Price-to-Book Ratio (MRQ) against their respective Biotechnology and Pharmaceuticals industry benchmarks.

Valuation at a Glance

SymbolABBVJNJ
Price-to-Earnings Ratio (TTM)87.6121.62
Price-to-Sales Ratio (TTM)6.056.15
Price-to-Book Ratio (MRQ)261.016.13
Price-to-Free Cash Flow Ratio (TTM)20.7829.42