ABBV vs. TEVA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABBV and TEVA, 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 TEVA’s 19.51 billion USD, indicating a significant difference in their market valuations.
With betas of 0.49 for ABBV and 0.61 for TEVA, both stocks show similar sensitivity to overall market movements.
TEVA 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 | TEVA |
|---|---|---|
| Company Name | AbbVie Inc. | Teva Pharmaceutical Industries Limited |
| Country | US | IL |
| Sector | Healthcare | Healthcare |
| Industry | Drug Manufacturers - General | Drug Manufacturers - Specialty & Generic |
| CEO | Robert A. Michael CPA | Richard D. Francis |
| Price | 189.28 USD | 17.01 USD |
| Market Cap | 334.34 billion USD | 19.51 billion USD |
| Beta | 0.49 | 0.61 |
| Exchange | NYSE | NYSE |
| IPO Date | January 2, 2013 | February 16, 1982 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ABBV and TEVA 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.
TEVA
-21.38%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 51.32%
- Q3
- 9.89%
- Median
- -3.37%
- Q1
- -20.99%
- Min
- -36.07%
TEVA has a negative Return on Equity of -21.38%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
TEVA
3.97%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 22.54%
- Q3
- 8.45%
- Median
- 1.42%
- Q1
- -9.01%
- Min
- -28.41%
TEVA’s Return on Invested Capital of 3.97% 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.
TEVA
-7.74%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 40.33%
- Q3
- 11.92%
- Median
- -0.45%
- Q1
- -13.07%
- Min
- -34.27%
TEVA has a negative Net Profit Margin of -7.74%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
TEVA
2.61%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 46.91%
- Q3
- 19.02%
- Median
- 6.23%
- Q1
- -11.23%
- Min
- -51.89%
TEVA’s Operating Profit Margin of 2.61% 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 | TEVA |
|---|---|---|
| Return on Equity (TTM) | 95.59% | -21.38% |
| Return on Assets (TTM) | 3.08% | -3.35% |
| Return on Invested Capital (TTM) | 17.93% | 3.97% |
| Net Profit Margin (TTM) | 7.31% | -7.74% |
| Operating Profit Margin (TTM) | 28.31% | 2.61% |
| Gross Profit Margin (TTM) | 77.46% | 49.17% |
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.
TEVA
1.03
Drug Manufacturers - Specialty & Generic Industry
- Max
- 5.74
- Q3
- 3.37
- Median
- 2.64
- Q1
- 1.73
- Min
- 0.88
TEVA’s Current Ratio of 1.03 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.
TEVA
2.71
Drug Manufacturers - Specialty & Generic Industry
- Max
- 1.45
- Q3
- 1.06
- Median
- 0.62
- Q1
- 0.13
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.71, TEVA operates with exceptionally high leverage compared to the Drug Manufacturers - Specialty & Generic industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
TEVA
0.44
Drug Manufacturers - Specialty & Generic Industry
- Max
- 10.17
- Q3
- 3.39
- Median
- 0.85
- Q1
- -2.63
- Min
- -5.84
TEVA’s Interest Coverage Ratio of 0.44 is a critical concern. A value below 1.0 means operating earnings are insufficient to cover interest expenses, indicating severe financial strain and high default risk.
Financial Strength at a Glance
| Symbol | ABBV | TEVA |
|---|---|---|
| Current Ratio (TTM) | 0.76 | 1.03 |
| Quick Ratio (TTM) | 0.64 | 0.74 |
| Debt-to-Equity Ratio (TTM) | 49.22 | 2.71 |
| Debt-to-Asset Ratio (TTM) | 0.51 | 0.44 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.96 | 10.26 |
| Interest Coverage Ratio (TTM) | 6.14 | 0.44 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABBV and TEVA. 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.
TEVA
0.00%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 9.29%
- Q3
- 0.31%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TEVA currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
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.
TEVA
0.00%
Drug Manufacturers - Specialty & Generic Industry
- Max
- 125.42%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TEVA has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | ABBV | TEVA |
|---|---|---|
| Dividend Yield (TTM) | 3.37% | 0.00% |
| Dividend Payout Ratio (TTM) | 266.46% | 0.00% |
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.
TEVA
-15.27
Drug Manufacturers - Specialty & Generic Industry
- Max
- 40.89
- Q3
- 28.12
- Median
- 23.94
- Q1
- 18.79
- Min
- 7.76
TEVA has a negative P/E Ratio of -15.27. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
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.
TEVA
-1.12
Drug Manufacturers - Specialty & Generic Industry
- Max
- 4.19
- Q3
- 2.94
- Median
- 1.47
- Q1
- 0.35
- Min
- 0.00
TEVA has a negative Forward PEG Ratio of -1.12. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
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.
TEVA
1.19
Drug Manufacturers - Specialty & Generic Industry
- Max
- 7.49
- Q3
- 4.45
- Median
- 2.12
- Q1
- 1.21
- Min
- 0.25
In the lower quartile for the Drug Manufacturers - Specialty & Generic industry, TEVA’s P/S Ratio of 1.19 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
TEVA
3.14
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 | TEVA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 79.77 | -15.27 |
| Forward PEG Ratio (TTM) | 7.21 | -1.12 |
| Price-to-Sales Ratio (P/S, TTM) | 5.83 | 1.19 |
| Price-to-Book Ratio (P/B, TTM) | 235.67 | 3.14 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 21.73 | 25.86 |
| EV-to-EBITDA (TTM) | 24.39 | 23.59 |
| EV-to-Sales (TTM) | 6.96 | 2.11 |