Pharmaceuticals and chemicals · 21/36 against 19/36 checks · to 2026-09-08
ABBV vs JNJ.
AbbVieMakes Humira, Skyrizi and Rinvoq for immune diseases, plus Botox and cancer drugs.
Johnson & JohnsonMakes prescription drugs and medical devices, after spinning off its consumer brands.→AbbVie (ABBV) and Johnson & Johnson (JNJ) are within reach of each other at $439.6B and $648.6B, and on the filings AbbVie passes more, 21 checks of 36 against 19.
Which passes more checks?
widest gap first→The two are furthest apart on Shareholder returns, where AbbVie passes 4 more of the six.
| ABBV | JNJ | |
|---|---|---|
| Shareholder returns | 6/6 | 2/6 |
| Growth | 3/6 | 1/6 |
| Trend analysis | 3/6 | 5/6 |
| Quality | 5/6 | 6/6 |
| Health | 3/6 | 4/6 |
| Value | 1/6 | 1/6 |
| All checks | 21/36 | 19/36 |
→Johnson & Johnson turns over $97.9B to AbbVie's $64.4B, 1.5 times as much. AbbVie keeps 9.8% of revenue as profit against 21.5% at Johnson & Johnson.
Which hands more back to owners?
→AbbVie pays 2.7% at today's price and Johnson & Johnson effectively pays nothing, which is the clearest difference in what each hands back.
| ABBV | JNJ | |
|---|---|---|
| Dividend yield | 2.7% | - |
| Payout ratio | 184.7% | - |
| Years of unbroken dividend | - | - |
Which is growing faster, ABBV or JNJ?
→AbbVie grew revenue faster last year, +10.4% against +8.1% at Johnson & Johnson - 2 points apart.
| ABBV | JNJ | |
|---|---|---|
| Revenue (TTM) | $64.4B | $97.9B |
| Revenue growth, 1 year | +10.4% | +8.1% |
| Revenue CAGR, 3 years | +1.8% | - |
| Net income (TTM) | $6.3B | $21.0B |
| Free cash flow (TTM) | $18.2B | $22.2B |
Which keeps more of each sale?
→AbbVie keeps more of each sale: gross margin of 71.5% against 67.9%, a gap of 4 points that flows into everything below it.
| ABBV | JNJ | |
|---|---|---|
| Gross margin | 71.5% | 67.9% |
| Operating margin | 26.2% | 22.2% |
| Return on equity | - | 24.8% |
Which balance sheet is stronger?
| ABBV | JNJ | |
|---|---|---|
| Debt / equity | - | 0.58x |
| Interest coverage | 5.8x | 21.5x |
| Cash and short-term investments | $6.6B | $20.8B |
Which is cheaper?
→Johnson & Johnson is the cheaper of the two on earnings, 31.1x against 69.9x. Against their own histories, AbbVie is above its 18.8x median and Johnson & Johnson is above its 19.6x.
| ABBV | JNJ | |
|---|---|---|
| Share price | $248.78 | $269.12 |
| Market cap | $439.6B | $648.6B |
| P/E | 69.9x | 31.1x |
| P/E, own median own 11-year median / own 6-year median | 18.8x | 19.6x |
| P/S | 6.8x | 6.6x |
| Free cash flow yield | 4.1% | 3.4% |
Where they differ most
the checks behind the gapShareholder returns: AbbVie 4 ahead
- Share count isn't climbing shares down 0.3% over 3 years
- Buybacks outpace the stock issued to staff $1.5B bought back vs $976M of stock compensation
- What it hands back fits inside its cash flow 74.0% vs 100.0%
- Meaningful yield to owners (dividends and buybacks) $8.1B returned, 1.2% of market value
- Buybacks are sustained, not one-off $8.1B bought back in the last twelve months, 0.00 the year before; no dividend
- Buybacks growing $8.1B vs 0.00 the year before; no dividend
Growth: AbbVie 2 ahead
- Profits grew last year 67.7% vs 0.0%
- Growth is speeding up, not slowing 1y 10.4% vs 3y 1.8%
- Grew per share, not just in total 5.6% vs 0.0%
- Outgrew its sector last year 8.1% vs 13.6% (sector 70th pct, n=254)
- Profits grew last year -7.2% vs 0.0%