Seek Returns logo

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

Updated on

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

Company Overview

NVDA’s market capitalization of 3,887.90 billion USD is significantly greater than ABBV’s 334.34 billion USD, highlighting its more substantial market valuation.

NVDA carries a higher beta at 2.12, indicating it’s more sensitive to market moves, while ABBV (beta: 0.49) exhibits greater stability.

SymbolABBVNVDA
Company NameAbbVie Inc.NVIDIA Corporation
CountryUSUS
SectorHealthcareTechnology
IndustryDrug Manufacturers - GeneralSemiconductors
CEORobert A. Michael CPAJen-Hsun Huang
Price189.28 USD159.34 USD
Market Cap334.34 billion USD3,887.90 billion USD
Beta0.492.12
ExchangeNYSENASDAQ
IPO DateJanuary 2, 2013January 22, 1999
ADRNoNo

Historical Performance

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

NVDA

106.92%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

NVDA’s Return on Equity of 106.92% is exceptionally high, placing it well beyond the typical range for the Semiconductors industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ABBV vs. NVDA: A comparison of their ROE against their respective Drug Manufacturers - General and Semiconductors 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.

NVDA

75.38%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

NVDA’s Return on Invested Capital of 75.38% is exceptionally high, placing it well beyond the typical range for the Semiconductors industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

ABBV vs. NVDA: A comparison of their ROIC against their respective Drug Manufacturers - General and Semiconductors 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.

NVDA

51.69%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

A Net Profit Margin of 51.69% places NVDA in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.

ABBV vs. NVDA: A comparison of their Net Profit Margin against their respective Drug Manufacturers - General and Semiconductors 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.

NVDA

58.03%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

An Operating Profit Margin of 58.03% places NVDA in the upper quartile for the Semiconductors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ABBV vs. NVDA: A comparison of their Operating Margin against their respective Drug Manufacturers - General and Semiconductors industry benchmarks.

Profitability at a Glance

SymbolABBVNVDA
Return on Equity (TTM)95.59%106.92%
Return on Assets (TTM)3.08%61.29%
Return on Invested Capital (TTM)17.93%75.38%
Net Profit Margin (TTM)7.31%51.69%
Operating Profit Margin (TTM)28.31%58.03%
Gross Profit Margin (TTM)77.46%70.11%

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.

NVDA

3.39

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

NVDA’s Current Ratio of 3.39 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.

ABBV vs. NVDA: A comparison of their Current Ratio against their respective Drug Manufacturers - General and Semiconductors 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.

NVDA

0.12

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

NVDA’s Debt-to-Equity Ratio of 0.12 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ABBV vs. NVDA: A comparison of their D/E Ratio against their respective Drug Manufacturers - General and Semiconductors 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.

NVDA

350.34

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

With an Interest Coverage Ratio of 350.34, NVDA demonstrates a superior capacity to service its debt, placing it well above the typical range for the Semiconductors industry. This stems from either robust earnings or a conservative debt load.

ABBV vs. NVDA: A comparison of their Interest Coverage against their respective Drug Manufacturers - General and Semiconductors industry benchmarks.

Financial Strength at a Glance

SymbolABBVNVDA
Current Ratio (TTM)0.763.39
Quick Ratio (TTM)0.642.96
Debt-to-Equity Ratio (TTM)49.220.12
Debt-to-Asset Ratio (TTM)0.510.08
Net Debt-to-EBITDA Ratio (TTM)3.96-0.05
Interest Coverage Ratio (TTM)6.14350.34

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ABBV vs. NVDA: 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.

NVDA

0.03%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

NVDA’s Dividend Yield of 0.03% is consistent with its peers in the Semiconductors industry, providing a dividend return that is standard for its sector.

ABBV vs. NVDA: A comparison of their Dividend Yield against their respective Drug Manufacturers - General and Semiconductors 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.

NVDA

1.28%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
Q1
0.00%
Min
0.00%

NVDA’s Dividend Payout Ratio of 1.28% is within the typical range for the Semiconductors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ABBV vs. NVDA: A comparison of their Payout Ratio against their respective Drug Manufacturers - General and Semiconductors industry benchmarks.

Dividend at a Glance

SymbolABBVNVDA
Dividend Yield (TTM)3.37%0.03%
Dividend Payout Ratio (TTM)266.46%1.28%

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.

NVDA

50.73

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

A P/E Ratio of 50.73 places NVDA in the upper quartile for the Semiconductors industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ABBV vs. NVDA: A comparison of their P/E Ratio against their respective Drug Manufacturers - General and Semiconductors 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.

NVDA

3.52

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

ABBV vs. NVDA: A comparison of their Forward PEG Ratio against their respective Drug Manufacturers - General and Semiconductors 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.

NVDA

26.18

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

With a P/S Ratio of 26.18, NVDA trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ABBV vs. NVDA: A comparison of their P/S Ratio against their respective Drug Manufacturers - General and Semiconductors 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.

NVDA

46.45

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

At 46.45, NVDA’s P/B Ratio is at an extreme premium to the Semiconductors 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.

ABBV vs. NVDA: A comparison of their P/B Ratio against their respective Drug Manufacturers - General and Semiconductors industry benchmarks.

Valuation at a Glance

SymbolABBVNVDA
Price-to-Earnings Ratio (P/E, TTM)79.7750.73
Forward PEG Ratio (TTM)7.213.52
Price-to-Sales Ratio (P/S, TTM)5.8326.18
Price-to-Book Ratio (P/B, TTM)235.6746.45
Price-to-Free Cash Flow Ratio (P/FCF, TTM)21.7353.95
EV-to-EBITDA (TTM)24.3942.68
EV-to-Sales (TTM)6.9626.15