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

Updated

Here’s a clear look at ABBV and MCK, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

ABBV dominates in value with a market cap of 321.13 billion USD, eclipsing MCK’s 89.92 billion USD by roughly 3.57×.

With betas of 0.55 for ABBV and 0.52 for MCK, both show similar volatility profiles relative to the overall market.

SymbolABBVMCK
Company NameAbbVie Inc.McKesson Corporation
CountryUSUS
SectorHealthcareHealthcare
IndustryDrug Manufacturers - GeneralMedical - Distribution
CEOMr. Robert A. Michael CPAMr. Brian S. Tyler Ph.D.
Price181.8 USD718.73 USD
Market Cap321.13 billion USD89.92 billion USD
Beta0.550.52
ExchangeNYSENYSE
IPO DateJanuary 2, 2013November 10, 1994
ADRNoNo

Performance Comparison

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

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of ABBV and MCK based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • MCK carries a sub-zero price-to-book ratio of -43.39, indicating negative equity. In contrast, ABBV (P/B 226.35) has positive book value.
SymbolABBVMCK
Price-to-Earnings Ratio (P/E, TTM)76.6227.31
Forward PEG Ratio (TTM)7.162.10
Price-to-Sales Ratio (P/S, TTM)5.600.25
Price-to-Book Ratio (P/B, TTM)226.35-43.39
Price-to-Free Cash Flow Ratio (P/FCF, TTM)20.8716.03
EV-to-EBITDA (TTM)23.5817.85
EV-to-Sales (TTM)6.730.26
EV-to-Free Cash Flow (TTM)25.0816.33

Dividend Comparison

ABBV’s dividend yield of 3.51% is about 817% higher than MCK’s 0.38%, underscoring its stronger focus on returning cash to shareholders.

SymbolABBVMCK
Dividend Yield (TTM)3.51%0.38%

Financial Strength Metrics Comparison

This section dives into the financial resilience of ABBV and MCK, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • With current ratios of 0.76 and 0.90, both ABBV and MCK have less current assets than short-term liabilities, which could strain their working capital and force reliance on additional financing.
  • Both ABBV (quick ratio 0.64) and MCK (quick ratio 0.53) fall below 0.8, meaning their most liquid assets—excluding inventory—aren’t enough to meet short-term obligations. This could force them to rely on receivables, inventory turn, or external financing.
  • ABBV carries high leverage (debt-to-equity ratio 49.22), whereas MCK has negative equity (-3.56), each presenting distinct capital-structure concerns.
SymbolABBVMCK
Current Ratio (TTM)0.760.90
Quick Ratio (TTM)0.640.53
Debt-to-Equity Ratio (TTM)49.22-3.56
Debt-to-Assets Ratio (TTM)0.510.10
Interest Coverage Ratio (TTM)6.1425.45