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

Updated

Here’s a clear look at ABBV and MRK, 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 MRK’s 193.30 billion USD by roughly 1.66×.

With betas of 0.55 for ABBV and 0.44 for MRK, both show similar volatility profiles relative to the overall market.

SymbolABBVMRK
Company NameAbbVie Inc.Merck & Co., Inc.
CountryUSUS
SectorHealthcareHealthcare
IndustryDrug Manufacturers - GeneralDrug Manufacturers - General
CEOMr. Robert A. Michael CPAMr. Robert M. Davis J.D.
Price181.8 USD76.98 USD
Market Cap321.13 billion USD193.30 billion USD
Beta0.550.44
ExchangeNYSENYSE
IPO DateJanuary 2, 2013January 13, 1978
ADRNoNo

Performance Comparison

This chart compares the performance of ABBV and MRK 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

For a detailed comparison of valuation metrics between ABBV and MRK, please refer to the table below.

SymbolABBVMRK
Price-to-Earnings Ratio (P/E, TTM)76.6211.18
Forward PEG Ratio (TTM)7.164.93
Price-to-Sales Ratio (P/S, TTM)5.603.02
Price-to-Book Ratio (P/B, TTM)226.354.03
Price-to-Free Cash Flow Ratio (P/FCF, TTM)20.8711.34
EV-to-EBITDA (TTM)23.588.04
EV-to-Sales (TTM)6.733.43
EV-to-Free Cash Flow (TTM)25.0812.88

Dividend Comparison

Both ABBV and MRK offer similar dividend yields (3.51% vs. 4.10%), indicating comparable approaches to balancing income and growth.

SymbolABBVMRK
Dividend Yield (TTM)3.51%4.10%

Financial Strength Metrics Comparison

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

  • ABBV’s current ratio of 0.76 signals a possible liquidity squeeze, while MRK at 1.41 comfortably covers its short-term obligations.
  • ABBV’s quick ratio of 0.64 suggests it may struggle to cover immediate liabilities without selling inventory or raising cash, whereas MRK at 1.16 maintains a comfortable buffer of liquid assets.
  • ABBV is heavily leveraged (debt-to-equity ratio 49.22), which can boost returns but raises risk if borrowing costs climb, while MRK at 0.72 keeps leverage at a more moderate level.
  • ABBV meets its interest obligations (ratio 6.14). In stark contrast, MRK’s negative ratio (-75.48) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.
SymbolABBVMRK
Current Ratio (TTM)0.761.41
Quick Ratio (TTM)0.641.16
Debt-to-Equity Ratio (TTM)49.220.72
Debt-to-Assets Ratio (TTM)0.510.30
Interest Coverage Ratio (TTM)6.14-75.48