ABBV vs. TAK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABBV and TAK, 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 TAK’s 48.28 billion USD, indicating a significant difference in their market valuations.
ABBV’s beta of 0.49 points to significantly higher volatility compared to TAK (beta: 0.26), suggesting ABBV has greater potential for both gains and losses relative to market movements.
TAK is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ABBV, on the other hand, is a domestic entity.
| Symbol | ABBV | TAK |
|---|---|---|
| Company Name | AbbVie Inc. | Takeda Pharmaceutical Company Limited |
| Country | US | JP |
| Sector | Healthcare | Healthcare |
| Industry | Drug Manufacturers - General | Drug Manufacturers - Specialty & Generic |
| CEO | Robert A. Michael CPA | Christophe Weber |
| Price | 189.28 USD | 15.34 USD |
| Market Cap | 334.34 billion USD | 48.28 billion USD |
| Beta | 0.49 | 0.26 |
| Exchange | NYSE | NYSE |
| IPO Date | January 2, 2013 | January 5, 2010 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ABBV and TAK 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.
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.
TAK
1.48%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 51.32%
- Q3
- 9.89%
- Median
- -3.37%
- Q1
- -20.99%
- Min
- -36.07%
TAK’s Return on Equity of 1.48% is on par with the norm for the Drug Manufacturers - Specialty & Generic industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
TAK
2.23%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 22.54%
- Q3
- 8.45%
- Median
- 1.42%
- Q1
- -9.01%
- Min
- -28.41%
TAK’s Return on Invested Capital of 2.23% is in line with the norm for the Drug Manufacturers - Specialty & Generic industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
TAK
2.36%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 40.33%
- Q3
- 11.92%
- Median
- -0.45%
- Q1
- -13.07%
- Min
- -34.27%
TAK’s Net Profit Margin of 2.36% is aligned with the median group of its peers in the Drug Manufacturers - Specialty & Generic industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
TAK
9.62%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 46.91%
- Q3
- 19.02%
- Median
- 6.23%
- Q1
- -11.23%
- Min
- -51.89%
TAK’s Operating Profit Margin of 9.62% is around the midpoint for the Drug Manufacturers - Specialty & Generic industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ABBV | TAK |
|---|---|---|
| Return on Equity (TTM) | 95.59% | 1.48% |
| Return on Assets (TTM) | 3.08% | 0.76% |
| Return on Invested Capital (TTM) | 17.93% | 2.23% |
| Net Profit Margin (TTM) | 7.31% | 2.36% |
| Operating Profit Margin (TTM) | 28.31% | 9.62% |
| Gross Profit Margin (TTM) | 77.46% | 54.70% |
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.
TAK
1.01
Drug Manufacturers - Specialty & Generic Industry
- Max
- 5.74
- Q3
- 3.37
- Median
- 2.64
- Q1
- 1.73
- Min
- 0.88
TAK’s Current Ratio of 1.01 falls into the lower quartile for the Drug Manufacturers - Specialty & Generic industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
TAK
0.65
Drug Manufacturers - Specialty & Generic Industry
- Max
- 1.45
- Q3
- 1.06
- Median
- 0.62
- Q1
- 0.13
- Min
- 0.00
TAK’s Debt-to-Equity Ratio of 0.65 is typical for the Drug Manufacturers - Specialty & Generic industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
TAK
2.10
Drug Manufacturers - Specialty & Generic Industry
- Max
- 10.17
- Q3
- 3.39
- Median
- 0.85
- Q1
- -2.63
- Min
- -5.84
TAK’s Interest Coverage Ratio of 2.10 is positioned comfortably within the norm for the Drug Manufacturers - Specialty & Generic industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ABBV | TAK |
|---|---|---|
| Current Ratio (TTM) | 0.76 | 1.01 |
| Quick Ratio (TTM) | 0.64 | 0.52 |
| Debt-to-Equity Ratio (TTM) | 49.22 | 0.65 |
| Debt-to-Asset Ratio (TTM) | 0.51 | 0.32 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.96 | 3.57 |
| Interest Coverage Ratio (TTM) | 6.14 | 2.10 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABBV and TAK. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
TAK
4.41%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 9.29%
- Q3
- 0.31%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 4.41%, TAK offers a more attractive income stream than most of its peers in the Drug Manufacturers - Specialty & Generic industry, signaling a strong commitment to shareholder returns.
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.
TAK
280.28%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 125.42%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TAK’s Dividend Payout Ratio of 280.28% 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.
Dividend at a Glance
| Symbol | ABBV | TAK |
|---|---|---|
| Dividend Yield (TTM) | 3.37% | 4.41% |
| Dividend Payout Ratio (TTM) | 266.46% | 280.28% |
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.
TAK
65.07
Drug Manufacturers - Specialty & Generic Industry
- Max
- 40.89
- Q3
- 28.12
- Median
- 23.94
- Q1
- 18.79
- Min
- 7.76
At 65.07, TAK’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Drug Manufacturers - Specialty & Generic industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
TAK
3.23
Drug Manufacturers - Specialty & Generic Industry
- Max
- 4.19
- Q3
- 2.94
- Median
- 1.47
- Q1
- 0.35
- Min
- 0.00
A Forward PEG Ratio of 3.23 places TAK in the upper quartile for the Drug Manufacturers - Specialty & Generic industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
TAK
1.53
Drug Manufacturers - Specialty & Generic Industry
- Max
- 7.49
- Q3
- 4.45
- Median
- 2.12
- Q1
- 1.21
- Min
- 0.25
TAK’s P/S Ratio of 1.53 aligns with the market consensus for the Drug Manufacturers - Specialty & Generic industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
TAK
1.01
Drug Manufacturers - Specialty & Generic Industry
- Max
- 4.93
- Q3
- 3.95
- Median
- 2.14
- Q1
- 1.30
- Min
- 0.13
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - Specialty & Generic industry.
Valuation at a Glance
| Symbol | ABBV | TAK |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 79.77 | 65.07 |
| Forward PEG Ratio (TTM) | 7.21 | 3.23 |
| Price-to-Sales Ratio (P/S, TTM) | 5.83 | 1.53 |
| Price-to-Book Ratio (P/B, TTM) | 235.67 | 1.01 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 21.73 | 9.97 |
| EV-to-EBITDA (TTM) | 24.39 | 9.61 |
| EV-to-Sales (TTM) | 6.96 | 2.43 |