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Compare Stocks › ABBV vs ADBE

AbbVie Inc. (ABBV) vs Adobe Inc. (ADBE): Which Is the Better Buy in 2026?

As of 2026-06-19, ABBV is overvalued at $216, with a DCF intrinsic value of $160 and a margin of safety of -35%. ADBE is undervalued at $195, with an intrinsic value of $558 and a margin of safety of 65%. Of the two, ADBE has the wider margin of safety.

ABBV
AbbVie Inc.
$216.49
VS
ADBE
Adobe Inc.
$195.16

Rewards

ABBV
  • ★AbbVie Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Gross margin of 72.0% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★AbbVie Inc. scores 82/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
ADBE
  • ★Adobe Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 89.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Adobe Inc. scores 100/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

ABBV
  • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
  • ⚠FCF yield of 5.4% suggests reasonable valuation assuming continued moderate growth.
  • ⚠Trailing P/E of 105.6x is 69% above the historical average of 62.3x — the stock trades at a premium to its own history.
ADBE

    Key Valuation Metrics

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    ABBV
    ADBE
    Valuation
    $20.81B
    Free Cash Flow
    $9.22B
    5.44%
    FCF Yield
    11.88%
    105.60
    Trailing P/E
    11.16
    13.32
    Forward P/E
    7.09
    Quality & Moat
    21.89%
    ROIC
    37.82%
    N/A
    ROE
    62.95%
    72.03%
    Gross Margin
    89.40%
    0.61
    PEG Ratio
    0.57
    Balance Sheet Safety
    N/A
    Net Debt / Equity
    0.13
    N/A
    Interest Coverage
    N/A
    2.12
    Net Debt / EBITDA
    0.15
    3.11%
    Dividend Yield
    0.00%
    ABBV: 2Ties: 1ADBE: 7
    ABBVADBE

    Historical Fundamentals

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    ABBV

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    ADBE

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    $1 Retained Earnings Test

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    ABBV
    N/A
    Net losses over 3 years — test not applicable
    Company had negative cumulative retained earnings
    Σ Retained
    $-19.85B
    Δ Market Cap
    +$118.02B
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
    ADBE
    $-0.60
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $18.12B
    Δ Market Cap
    $-10.93B
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Discounted Cash Flow (DCF) Analysis

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    ABBV
    35.3% Overvalued
    Price is 35.3% above estimated fair value
    Current Price: $216.49
    Fair Value: $160.05
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    ADBE
    65.0% Margin of Safety
    Price is 65.0% below estimated fair value
    Current Price: $195.16
    Fair Value: $558.28
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    ABBV

    What growth rate is the market pricing in at $216?

    +17.1%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +8.7%

    The market implies +17.1% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +8.7%, reflecting heavy growth investment.

    ADBE

    What growth rate is the market pricing in at $195?

    -1.6%
    Market-Implied Owner Earnings Growth
    Standard FCF implies -4.0%

    The market implies -1.6% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding -4.0%, reflecting heavy growth investment expected to generate future returns.

    Economic Moat Score

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    ABBV
    82/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat with strength across all dimensions. Reinvestment Efficiency is the standout factor.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
    ADBE
    100/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

    Forensic Accounting

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    ABBV
    -2.86
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
    ADBE
    -2.85
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Ownership Breakdown

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    ABBV
    Insiders 0.1%Institutions 76.9%Retail & Other 23.0%
    No. of Institutional Holders5,106
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
    ADBE
    Insiders 0.2%Institutions 88.1%Retail & Other 11.7%
    No. of Institutional Holders3,191
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

    High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

    Insider Buying Activity

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    ABBV
    0
    Buys (3M)
    0
    Buys (12M)
    No open market insider purchases found.
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    ADBE
    0
    Buys (3M)
    0
    Buys (12M)
    DURN DANIEL J
    Chief Financial Officer
    $507,758
    @ $390.58 · 2025-03-20
    RICKS DAVID A
    Director
    $998,946
    @ $443.98 · 2025-01-28
    Open market purchases · includes direct & indirect ownership · excludes option exercises

    Open market purchases · includes direct & indirect ownership · excludes option exercises.

    Insider Selling Activity

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    ABBV
    0
    Sells (3M)
    5
    Sells (12M)
    Total value (12M): $21.79M
    PURDUE DAVID R.
    Officer
    $1.22M
    @ $233.56 · 2026-03-04
    SIATIS PERRY C.
    General Counsel
    $4.38M
    @ $234.39 · 2026-03-02
    SIATIS PERRY C.
    General Counsel
    $5.15M
    @ $230.00 · 2026-02-25
    SALEKI-GERHARDT AZITA
    Chief Operating Officer
    $8.41M
    @ $198.42 · 2025-08-12
    DONOGHOE NICHOLAS
    Officer
    $2.64M
    @ $198.51 · 2025-08-05
    STEWART JEFFREY RYAN
    Officer
    $12.36M
    @ $210.08 · 2025-03-31
    REENTS SCOTT T.
    Chief Financial Officer
    $3.75M
    @ $212.34 · 2025-03-14
    GONZALEZ RICHARD A
    Director
    $20.26M
    @ $205.45 · 2025-03-03
    SIATIS PERRY C.
    General Counsel
    $5.82M
    @ $208.69 · 2025-03-03
    RICHMOND TIMOTHY J
    Officer
    $4.47M
    @ $210.45 · 2025-03-03
    BUCKBEE KEVIN K
    Officer
    $3.85M
    @ $203.41 · 2025-02-26
    RICHMOND TIMOTHY J
    Officer
    $6.07M
    @ $202.90 · 2025-02-26
    SIATIS PERRY C.
    General Counsel
    $1.14M
    @ $197.90 · 2025-02-20
    BUCKBEE KEVIN K
    Officer
    $310,032
    @ $172.24 · 2024-12-16
    GONZALEZ RICHARD A
    Officer and Director
    $12.40M
    @ $186.52 · 2024-08-05
    GONZALEZ RICHARD A
    Officer and Director
    $49.50M
    @ $175.00 · 2024-07-17
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    ADBE
    2
    Sells (3M)
    4
    Sells (12M)
    Total value (12M): $1.05M
    FORUSZ JILLIAN
    Officer
    $185,915
    @ $246.25 · 2026-04-30
    DURN DANIEL J
    Chief Financial Officer
    $331,355
    @ $248.02 · 2026-04-20
    DURN DANIEL J
    Chief Financial Officer
    $485,323
    @ $294.85 · 2026-01-27
    FORUSZ JILLIAN
    Officer
    $50,344
    @ $337.88 · 2025-10-31
    FORUSZ JILLIAN
    Officer
    $175,828
    @ $380.58 · 2025-05-02
    FORUSZ JILLIAN
    Officer
    $145,567
    @ $435.83 · 2025-01-28
    BELSKY SCOTT K
    Officer
    $2.05M
    @ $431.61 · 2025-01-27
    BANSE AMY L
    Director
    $333,300
    @ $550.00 · 2024-12-06
    FORUSZ JILLIAN
    Officer
    $327,987
    @ $485.19 · 2024-10-29
    BELSKY SCOTT K
    Officer
    $232,525
    @ $483.42 · 2024-10-25
    BELSKY SCOTT K
    Officer
    $1.14M
    @ $511.48 · 2024-10-16
    DURN DANIEL J
    Chief Financial Officer
    $3.35M
    @ $515.44 · 2024-09-17
    GARFIELD MARK S.
    Officer
    $52,089
    @ $537.00 · 2024-07-25
    BELSKY SCOTT K
    Officer
    $258,297
    @ $537.00 · 2024-07-25
    GARFIELD MARK S.
    Officer
    $85,255
    @ $564.60 · 2024-07-16
    BELSKY SCOTT K
    Officer
    $1.25M
    @ $561.60 · 2024-07-16
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

    🎭 Mr. Market's Mood

    Learn more →
    ABBV
    FearGreed
    😐Neutral(56/100)

    "Market is pricing this stock without strong emotion in either direction"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
    ADBE
    FearGreed
    🥶Extreme Fear(17/100)

    "Mr. Market is panicking — potential buying opportunity if fundamentals are strong"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    ⚖️ Buffett Signal

    Learn more →
    ABBV
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Neutral (56)
    ADBE
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Extreme Fear (17)
    View ABBV Full AnalysisView ADBE Full Analysis

    Frequently Asked Questions: ABBV vs ADBE

    Is AbbVie Inc. or Adobe Inc. more undervalued in 2026?▼

    Based on our discounted cash flow model, ADBE trades at a 65.0% margin of safety (intrinsic value $558 vs. price $195), compared to ABBV's -35.3% margin of safety (intrinsic $160 vs. $216).

    Which stock has a wider economic moat, AbbVie Inc. or Adobe Inc.?▼

    ADBE scores 100/100 (Wide moat), while ABBV scores 82/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is AbbVie Inc. in financial distress?▼

    ABBV's Altman Z-Score of 2.4 places it in the Grey zone, signaling elevated bankruptcy risk. ADBE scores 8.8 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

    Which company has better free cash flow, AbbVie Inc. or Adobe Inc.?▼

    Adobe Inc. (ADBE) generates a 11.9% free cash flow yield, compared to AbbVie Inc.'s 5.4%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

    Which stock has higher return on invested capital, AbbVie Inc. or Adobe Inc.?▼

    ADBE earns 37.8% ROIC versus ABBV's 21.9%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

    ABBV vs ADBE: Which Is the Better Buy in 2026? | SafetyMargin.io