Financial Review: AbbVie (ABBV) vs. Its Competitors

AbbVie (NYSE: ABBV) is one of 19 public companies in the “Specialty & Advanced Pharmaceuticals” industry, but how does it contrast to its rivals? We will compare AbbVie to similar companies based on the strength of its institutional ownership, risk, valuation, earnings, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a summary of current ratings and target prices for AbbVie and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AbbVie 0 6 10 0 2.63
AbbVie Competitors 63 299 947 27 2.70

AbbVie currently has a consensus price target of $91.33, suggesting a potential downside of 1.13%. As a group, “Specialty & Advanced Pharmaceuticals” companies have a potential upside of 20.45%. Given AbbVie’s rivals stronger consensus rating and higher probable upside, analysts clearly believe AbbVie has less favorable growth aspects than its rivals.

Dividends

AbbVie pays an annual dividend of $2.56 per share and has a dividend yield of 2.8%. AbbVie pays out 62.9% of its earnings in the form of a dividend. As a group, “Specialty & Advanced Pharmaceuticals” companies pay a dividend yield of 2.8% and pay out 62.9% of their earnings in the form of a dividend. AbbVie has increased its dividend for 44 consecutive years.

Profitability

This table compares AbbVie and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AbbVie 24.77% 150.27% 12.52%
AbbVie Competitors -540.60% -41.61% -24.68%

Earnings & Valuation

This table compares AbbVie and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
AbbVie $26.71 billion $11.57 billion 22.70
AbbVie Competitors $2.40 billion $905.93 million 0.19

AbbVie has higher revenue and earnings than its rivals. AbbVie is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

68.3% of AbbVie shares are owned by institutional investors. Comparatively, 67.0% of shares of all “Specialty & Advanced Pharmaceuticals” companies are owned by institutional investors. 0.2% of AbbVie shares are owned by company insiders. Comparatively, 11.5% of shares of all “Specialty & Advanced Pharmaceuticals” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

AbbVie has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, AbbVie’s rivals have a beta of 0.89, indicating that their average share price is 11% less volatile than the S&P 500.

Summary

AbbVie beats its rivals on 8 of the 13 factors compared.

About AbbVie

AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The Company is engaged in the discovery, development, manufacture and sale of a range of pharmaceutical products. Its products are focused on treating conditions, such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson’s disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis, and other serious health conditions. It offers products in various categories, including HUMIRA (adalimumab), Oncology products, Virology Products, Additional Virology products, Metabolics/Hormones products, Endocrinology products and other products, which include Duopa and Duodopa (carbidopa and levodopa), Anesthesia products and ZINBRYTA (daclizumab).

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