ABBV vs. THC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABBV and THC, 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 THC’s 15.93 billion USD, indicating a significant difference in their market valuations.
THC carries a higher beta at 1.67, indicating it’s more sensitive to market moves, while ABBV (beta: 0.49) exhibits greater stability.
| Symbol | ABBV | THC |
|---|---|---|
| Company Name | AbbVie Inc. | Tenet Healthcare Corporation |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Drug Manufacturers - General | Medical - Care Facilities |
| CEO | Robert A. Michael CPA | Saumya Sutaria |
| Price | 189.28 USD | 171.5 USD |
| Market Cap | 334.34 billion USD | 15.93 billion USD |
| Beta | 0.49 | 1.67 |
| Exchange | NYSE | NYSE |
| IPO Date | January 2, 2013 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ABBV and THC 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.
THC
37.16%
Medical - Care Facilities Industry
- Max
- 37.16%
- Q3
- 13.80%
- Median
- 6.51%
- Q1
- -11.55%
- Min
- -43.55%
In the upper quartile for the Medical - Care Facilities industry, THC’s Return on Equity of 37.16% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
THC
11.38%
Medical - Care Facilities Industry
- Max
- 20.36%
- Q3
- 9.05%
- Median
- 5.41%
- Q1
- -1.08%
- Min
- -9.00%
In the upper quartile for the Medical - Care Facilities industry, THC’s Return on Invested Capital of 11.38% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
THC
7.09%
Medical - Care Facilities Industry
- Max
- 12.40%
- Q3
- 6.23%
- Median
- 3.17%
- Q1
- -3.80%
- Min
- -13.43%
A Net Profit Margin of 7.09% places THC in the upper quartile for the Medical - Care Facilities industry, signifying strong profitability and more effective cost management than most of its peers.
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.
THC
17.17%
Medical - Care Facilities Industry
- Max
- 17.86%
- Q3
- 10.40%
- Median
- 6.40%
- Q1
- 0.40%
- Min
- -10.86%
An Operating Profit Margin of 17.17% places THC in the upper quartile for the Medical - Care Facilities industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ABBV | THC |
|---|---|---|
| Return on Equity (TTM) | 95.59% | 37.16% |
| Return on Assets (TTM) | 3.08% | 4.98% |
| Return on Invested Capital (TTM) | 17.93% | 11.38% |
| Net Profit Margin (TTM) | 7.31% | 7.09% |
| Operating Profit Margin (TTM) | 28.31% | 17.17% |
| Gross Profit Margin (TTM) | 77.46% | 47.32% |
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.
THC
1.78
Medical - Care Facilities Industry
- Max
- 2.67
- Q3
- 1.76
- Median
- 1.35
- Q1
- 1.12
- Min
- 0.57
THC’s Current Ratio of 1.78 is in the upper quartile for the Medical - Care Facilities industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
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.
THC
3.15
Medical - Care Facilities Industry
- Max
- 2.55
- Q3
- 1.40
- Median
- 0.76
- Q1
- 0.26
- Min
- 0.01
With a Debt-to-Equity Ratio of 3.15, THC operates with exceptionally high leverage compared to the Medical - Care Facilities 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.
THC
5.80
Medical - Care Facilities Industry
- Max
- 16.29
- Q3
- 6.85
- Median
- 2.93
- Q1
- 0.35
- Min
- -7.11
THC’s Interest Coverage Ratio of 5.80 is positioned comfortably within the norm for the Medical - Care Facilities industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ABBV | THC |
|---|---|---|
| Current Ratio (TTM) | 0.76 | 1.78 |
| Quick Ratio (TTM) | 0.64 | 1.70 |
| Debt-to-Equity Ratio (TTM) | 49.22 | 3.15 |
| Debt-to-Asset Ratio (TTM) | 0.51 | 0.45 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.96 | 2.29 |
| Interest Coverage Ratio (TTM) | 6.14 | 5.80 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABBV and THC. 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.
THC
0.00%
Medical - Care Facilities Industry
- Max
- 2.79%
- Q3
- 0.08%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
THC 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.
THC
0.00%
Medical - Care Facilities Industry
- Max
- 56.48%
- Q3
- 4.48%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
THC 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 | THC |
|---|---|---|
| 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.
THC
11.11
Medical - Care Facilities Industry
- Max
- 40.40
- Q3
- 28.24
- Median
- 24.89
- Q1
- 13.53
- Min
- 8.53
In the lower quartile for the Medical - Care Facilities industry, THC’s P/E Ratio of 11.11 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
THC
0.54
Medical - Care Facilities Industry
- Max
- 4.23
- Q3
- 3.06
- Median
- 1.16
- Q1
- 0.77
- Min
- 0.04
In the lower quartile for the Medical - Care Facilities industry, THC’s Forward PEG Ratio of 0.54 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
THC
0.78
Medical - Care Facilities Industry
- Max
- 2.38
- Q3
- 1.50
- Median
- 0.79
- Q1
- 0.49
- Min
- 0.04
THC’s P/S Ratio of 0.78 aligns with the market consensus for the Medical - Care Facilities 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.
THC
3.87
Medical - Care Facilities Industry
- Max
- 7.73
- Q3
- 4.07
- Median
- 2.16
- Q1
- 1.44
- Min
- 0.66
THC’s P/B Ratio of 3.87 is within the conventional range for the Medical - Care Facilities industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ABBV | THC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 79.77 | 11.11 |
| Forward PEG Ratio (TTM) | 7.21 | 0.54 |
| Price-to-Sales Ratio (P/S, TTM) | 5.83 | 0.78 |
| Price-to-Book Ratio (P/B, TTM) | 235.67 | 3.87 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 21.73 | 11.20 |
| EV-to-EBITDA (TTM) | 24.39 | 5.88 |
| EV-to-Sales (TTM) | 6.96 | 1.27 |