ABBV vs. UNH: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABBV and UNH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ABBV’s market capitalization stands at 334.34 billion USD, while UNH’s is 279.90 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.49 for ABBV and 0.45 for UNH, both stocks show similar sensitivity to overall market movements.
| Symbol | ABBV | UNH |
|---|---|---|
| Company Name | AbbVie Inc. | UnitedHealth Group Incorporated |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Drug Manufacturers - General | Medical - Healthcare Plans |
| CEO | Robert A. Michael CPA | Stephen J. Hemsley |
| Price | 189.28 USD | 308.55 USD |
| Market Cap | 334.34 billion USD | 279.90 billion USD |
| Beta | 0.49 | 0.45 |
| Exchange | NYSE | NYSE |
| IPO Date | January 2, 2013 | October 17, 1984 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ABBV and UNH 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.
UNH
24.09%
Medical - Healthcare Plans Industry
- Max
- 13.94%
- Q3
- 13.62%
- Median
- 11.42%
- Q1
- 7.74%
- Min
- 6.98%
UNH’s Return on Equity of 24.09% is exceptionally high, placing it well beyond the typical range for the Medical - Healthcare Plans industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
UNH
13.21%
Medical - Healthcare Plans Industry
- Max
- 15.50%
- Q3
- 7.12%
- Median
- 5.48%
- Q1
- -3.47%
- Min
- -15.02%
In the upper quartile for the Medical - Healthcare Plans industry, UNH’s Return on Invested Capital of 13.21% 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.
UNH
5.43%
Medical - Healthcare Plans Industry
- Max
- 3.23%
- Q3
- 2.62%
- Median
- 1.70%
- Q1
- 1.27%
- Min
- 1.22%
UNH’s Net Profit Margin of 5.43% is exceptionally high, placing it well beyond the typical range for the Medical - Healthcare Plans industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
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.
UNH
8.22%
Medical - Healthcare Plans Industry
- Max
- 4.30%
- Q3
- 3.77%
- Median
- 2.61%
- Q1
- 1.60%
- Min
- -1.64%
UNH’s Operating Profit Margin of 8.22% is exceptionally high, placing it well above the typical range for the Medical - Healthcare Plans industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | ABBV | UNH |
|---|---|---|
| Return on Equity (TTM) | 95.59% | 24.09% |
| Return on Assets (TTM) | 3.08% | 7.14% |
| Return on Invested Capital (TTM) | 17.93% | 13.21% |
| Net Profit Margin (TTM) | 7.31% | 5.43% |
| Operating Profit Margin (TTM) | 28.31% | 8.22% |
| Gross Profit Margin (TTM) | 77.46% | 21.48% |
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.
UNH
0.85
Medical - Healthcare Plans Industry
- Max
- 1.91
- Q3
- 1.63
- Median
- 1.43
- Q1
- 0.85
- Min
- 0.78
UNH’s Current Ratio of 0.85 aligns with the median group of the Medical - Healthcare Plans industry, indicating that its short-term liquidity is in line with its sector 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.
UNH
0.86
Medical - Healthcare Plans Industry
- Max
- 1.06
- Q3
- 0.86
- Median
- 0.75
- Q1
- 0.66
- Min
- 0.66
UNH’s Debt-to-Equity Ratio of 0.86 is typical for the Medical - Healthcare Plans 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.
UNH
16.30
Medical - Healthcare Plans Industry
- Max
- 6.23
- Q3
- 6.23
- Median
- 5.19
- Q1
- 4.64
- Min
- 3.18
With an Interest Coverage Ratio of 16.30, UNH demonstrates a superior capacity to service its debt, placing it well above the typical range for the Medical - Healthcare Plans industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ABBV | UNH |
|---|---|---|
| Current Ratio (TTM) | 0.76 | 0.85 |
| Quick Ratio (TTM) | 0.64 | 0.85 |
| Debt-to-Equity Ratio (TTM) | 49.22 | 0.86 |
| Debt-to-Asset Ratio (TTM) | 0.51 | 0.26 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.96 | 1.57 |
| Interest Coverage Ratio (TTM) | 6.14 | 16.30 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABBV and UNH. 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.
UNH
2.76%
Medical - Healthcare Plans Industry
- Max
- 3.88%
- Q3
- 1.78%
- Median
- 0.73%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.76%, UNH offers a more attractive income stream than most of its peers in the Medical - Healthcare Plans 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.
UNH
34.90%
Medical - Healthcare Plans Industry
- Max
- 63.88%
- Q3
- 29.91%
- Median
- 12.57%
- Q1
- 0.00%
- Min
- 0.00%
UNH’s Dividend Payout Ratio of 34.90% is in the upper quartile for the Medical - Healthcare Plans industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ABBV | UNH |
|---|---|---|
| Dividend Yield (TTM) | 3.37% | 2.76% |
| Dividend Payout Ratio (TTM) | 266.46% | 34.90% |
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.
UNH
12.81
Medical - Healthcare Plans Industry
- Max
- 18.17
- Q3
- 17.32
- Median
- 15.48
- Q1
- 13.55
- Min
- 12.84
UNH’s P/E Ratio of 12.81 is below the typical range for the Medical - Healthcare Plans industry. This may indicate that the stock is potentially undervalued, or it could reflect market concerns about the company’s future prospects.
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.
UNH
0.78
Medical - Healthcare Plans Industry
- Max
- 1.41
- Q3
- 1.09
- Median
- 0.85
- Q1
- 0.79
- Min
- 0.60
In the lower quartile for the Medical - Healthcare Plans industry, UNH’s Forward PEG Ratio of 0.78 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.
UNH
0.69
Medical - Healthcare Plans Industry
- Max
- 0.94
- Q3
- 0.64
- Median
- 0.43
- Q1
- 0.27
- Min
- 0.16
UNH’s P/S Ratio of 0.69 is in the upper echelon for the Medical - Healthcare Plans 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.
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.
UNH
2.98
Medical - Healthcare Plans Industry
- Max
- 4.08
- Q3
- 3.83
- Median
- 2.63
- Q1
- 1.74
- Min
- 0.96
UNH’s P/B Ratio of 2.98 is within the conventional range for the Medical - Healthcare Plans 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 | UNH |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 79.77 | 12.81 |
| Forward PEG Ratio (TTM) | 7.21 | 0.78 |
| Price-to-Sales Ratio (P/S, TTM) | 5.83 | 0.69 |
| Price-to-Book Ratio (P/B, TTM) | 235.67 | 2.98 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 21.73 | 11.26 |
| EV-to-EBITDA (TTM) | 24.39 | 10.28 |
| EV-to-Sales (TTM) | 6.96 | 0.81 |