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

Dividends

AbbVie pays an annual dividend of $2.56 per share and has a dividend yield of 2.9%. 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 2.9% and pay out 62.9% of their earnings in the form of a dividend. AbbVie has raised its dividend for 44 consecutive years.

Valuation & Earnings

This table compares AbbVie and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
AbbVie $26.71 billion $11.57 billion 21.74
AbbVie Competitors $2.57 billion $977.16 million 3.58

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

Volatility & Risk

AbbVie has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, AbbVie’s competitors have a beta of 0.81, meaning that their average stock price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for AbbVie and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AbbVie 0 6 7 0 2.54
AbbVie Competitors 97 366 960 28 2.63

AbbVie currently has a consensus price target of $81.42, indicating a potential downside of 7.97%. As a group, “Specialty & Advanced Pharmaceuticals” companies have a potential upside of 29.28%. Given AbbVie’s competitors stronger consensus rating and higher probable upside, analysts clearly believe AbbVie has less favorable growth aspects than its competitors.

Profitability

This table compares AbbVie and its competitors’ 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 -538.85% -41.85% -24.81%

Insider & Institutional Ownership

68.3% of AbbVie shares are held by institutional investors. Comparatively, 66.5% of shares of all “Specialty & Advanced Pharmaceuticals” companies are held by institutional investors. 0.2% of AbbVie shares are held by insiders. Comparatively, 10.0% of shares of all “Specialty & Advanced Pharmaceuticals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

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

AbbVie Company Profile

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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