ABBV vs RTX: Which Is the Better Buy?

Side-by-side comparison of AbbVie Inc. and RTX Corporation — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-05-04.
AbbVie Inc. · Healthcare
$197.69
+11.0% upside to fair value
Grade C High Quality
VS
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
ABBV has more upside to fair value (+11.0%). RTX trades at a lower forward P/E (32.1x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric ABBV RTX
Current Price $197.69 $172.90
Fair Value Estimate $219.51 $136.05
Upside to Fair Value +11.0% -21.3%
Market Cap $349.7B $232.8B
Forward P/E 83.3x 32.1x
EV / EBITDA 23.4x 19.2x
Price / Sales 5.7x 2.6x
Price / FCF 18.7x 27.9x
Revenue Growth YoY +10.0% +8.7%
Gross Margin 70.2% 20.2%
Operating Margin 26.7% 10.4%
Return on Equity -361.6% 11.2%
Dividend Yield 0% 0%
FCF Yield 5.35% 3.59%
Analyst Consensus Strong Buy Buy
Investment Thesis
ABBV — AbbVie Inc.
AbbVie Inc. is a leading healthcare company specializing in drug manufacturing with a strong focus on immunology, neuroscience, oncology, and aesthetics. The company benefits from a durable competitive moat driven by blockbuster drugs such as Skyrizi and Rinvoq, which are experiencing rapid growth and offsetting declines from Humira due to biosimilar competition. Despite a high trailing and forwa…
RTX — RTX Corporation
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
Metric ABBV RTX
Zone Low $164.63 $102.04
Zone High $186.58 $115.64
In Buy Zone? No No
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