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

Updated

Here’s a clear look at ABBV and TEVA, 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 TEVA’s 18.88 billion USD by roughly 17.01×.

With betas of 0.55 for ABBV and 0.63 for TEVA, both show similar volatility profiles relative to the overall market.

TEVA is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike ABBV, which is purely domestic.

SymbolABBVTEVA
Company NameAbbVie Inc.Teva Pharmaceutical Industries Limited
CountryUSIL
SectorHealthcareHealthcare
IndustryDrug Manufacturers - GeneralDrug Manufacturers - Specialty & Generic
CEOMr. Robert A. Michael CPAMr. Richard D. Francis
Price181.8 USD16.475 USD
Market Cap321.13 billion USD18.88 billion USD
Beta0.550.63
ExchangeNYSENYSE
IPO DateJanuary 2, 2013February 16, 1982
ADRNoYes

Performance Comparison

This chart compares the performance of ABBV and TEVA 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 TEVA based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • TEVA shows a negative P/E of -14.63, highlighting a year of losses, whereas ABBV at 76.62 trades on solid profitability.
  • TEVA shows a negative forward PEG of -1.14, signaling expected earnings contraction, while ABBV at 7.16 maintains analysts’ projections for stable or improved profits.
SymbolABBVTEVA
Price-to-Earnings Ratio (P/E, TTM)76.62-14.63
Forward PEG Ratio (TTM)7.16-1.14
Price-to-Sales Ratio (P/S, TTM)5.601.14
Price-to-Book Ratio (P/B, TTM)226.353.01
Price-to-Free Cash Flow Ratio (P/FCF, TTM)20.8724.77
EV-to-EBITDA (TTM)23.5823.02
EV-to-Sales (TTM)6.732.06
EV-to-Free Cash Flow (TTM)25.0844.69

Dividend Comparison

ABBV delivers a 3.51% dividend yield, blending income with growth, whereas TEVA appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.

SymbolABBVTEVA
Dividend Yield (TTM)3.51%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of ABBV and TEVA, 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 TEVA at 1.03 comfortably covers its short-term obligations.
  • Both ABBV (quick ratio 0.64) and TEVA (quick ratio 0.74) 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 is heavily leveraged (debt-to-equity ratio 49.22), which can boost returns but raises risk if borrowing costs climb, while TEVA at 2.71 keeps leverage at a more moderate level.
  • TEVA’s low interest coverage (0.44) means it doesn't cover interest from operating earnings. ABBV (at 6.14) meets its interest obligations.
SymbolABBVTEVA
Current Ratio (TTM)0.761.03
Quick Ratio (TTM)0.640.74
Debt-to-Equity Ratio (TTM)49.222.71
Debt-to-Assets Ratio (TTM)0.510.44
Interest Coverage Ratio (TTM)6.140.44