ABBV vs JNJ: Which Is the Better Buy?

Side-by-side comparison of AbbVie Inc. and Johnson & Johnson β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-04-11.
AbbVie Inc. Β· Healthcare
$208.05
+4.5% upside to fair value
Grade C High Quality
VS
Johnson & Johnson Β· Healthcare
$238.46
-11.8% upside to fair value
Med Conviction Grade C+
QuantHub Verdict
ABBV has more upside to fair value (+4.5%). ABBV trades at a lower forward P/E (14.9x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric ABBV JNJ
Current Price $208.05 $238.46
Fair Value Estimate $217.50 $210.28
Upside to Fair Value +4.5% -11.8%
Market Cap $367.9B $574.7B
Forward P/E 14.9x 20.2x
EV / EBITDA 16.7x 13.3x
Price / Sales 6.1x 6.2x
Price / FCF 20.9x 29.4x
Revenue Growth YoY +8.6% +6.1%
Gross Margin 83.7% 72.8%
Operating Margin 34.7% 27.2%
Return on Equity -129.24% 32.87%
Dividend Yield 3.2% 2.18%
FCF Yield 4.78% 3.4%
Analyst Consensus Buy Moderate Buy
Investment Thesis
ABBV β€” AbbVie Inc.
AbbVie is a leading diversified biopharmaceutical company navigating the post-Humira transition with strong momentum from Skyrizi and Rinvoq in immunology and continued growth in neuroscience. Full-year 2025 revenue reached $61.2 billion with a gross margin of 83.7% and operating margin of 34.7%, demonstrating operational strength despite the ongoing Humira erosion. Management guides to $67 billi…
JNJ β€” Johnson & Johnson
Johnson & Johnson is a high-quality healthcare conglomerate focused exclusively on Innovative Medicine and MedTech following the Kenvue spin-off. The company delivered $94.2B in FY2025 revenue with 6% operational growth, generated $19.7B in free cash flow, and guided for $99.5-100.5B in 2026 operational sales (above consensus). However, at $238 the stock trades at a P/S of 6.15x, well above the 5…
Accumulation Zones
Metric ABBV JNJ
Zone Low $163.13 $157.71
Zone High $184.88 $178.74
In Buy Zone? No No
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