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Compare Stocks › ABBV vs AIG

AbbVie Inc. (ABBV) vs American International Group, I (AIG): Which Is the Better Buy in 2026?

As of 2026-08-03, ABBV is overvalued at $251, with a DCF intrinsic value of $178 and a margin of safety of -41%. AIG is undervalued at $79, with an intrinsic value of $79560606442 and a margin of safety of 100%. Of the two, AIG has the wider margin of safety.

ABBV
AbbVie Inc.
$250.94
VS
AIG
American International Group, I
$78.58

Rewards

ABBV
  • ★AbbVie Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Gross margin of 72.8% 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.
AIG
  • ★American International Group, I scores 80/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★PEG ratio of 0.64 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
  • ★Net debt/EBITDA of -0.1x means the company holds more cash than debt — a net cash position.

Risks

ABBV
  • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
  • ⚠Free cash flow has declined at a 9.8% CAGR over the past 4 years — a concerning trend.
AIG
  • ⚠Altman Z-Score of 0.49 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
  • ⚠Free cash flow has declined at a 7.1% CAGR over the past 4 years — a concerning trend.

Key Valuation Metrics

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ABBV
AIG
Valuation
N/A
Free Cash Flow
$9.52B
N/A
FCF Yield
N/A
70.89
Trailing P/E
13.83
15.41
Forward P/E
8.89
Quality & Moat
27.60%
ROIC
7.92%
N/A
ROE
7.72%
72.79%
Gross Margin
35.53%
0.41
PEG Ratio
0.64
Balance Sheet Safety
N/A
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
2.06
Net Debt / EBITDA
-0.05
2.76%
Dividend Yield
2.55%
ABBV: 4Ties: 1AIG: 3
ABBVAIG

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.

AIG

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
AIG
$0.00
created per $1 retained over 3 years
Value Destroyer
Σ Retained
$2.31B
Δ Market Cap
+$22.31
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
40.7% Overvalued
Price is 40.7% above estimated fair value
Current Price: $250.94
Fair Value: $178.31
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
AIG
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $78.58
Fair Value: $79560606442.17
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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ABBV

Requires positive FCF to compute implied growth rate.

AIG

What growth rate is the market pricing in at $79?

-30.0%
Market-Implied Owner Earnings Growth
Standard FCF implies -30.0%

The market implies -30.0% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies -30.0%, reflecting ongoing growth investment.

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.
AIG
80/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Reinvestment Efficiency is the area most vulnerable to competitive pressure.

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.
AIG
-2.53
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
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 Holders5,146
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.
AIG
Insiders 0.6%Institutions 100.0%
No. of Institutional Holders1,518
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
AIG
0
Buys (3M)
4
Buys (12M)
Total value (12M): $54,907
INGLIS JOHN C
Director
$1,200
@ $92.31 · 2025-12-30
WALSH KEITH
Chief Financial Officer
$2,207
@ $81.74 · 2025-12-30
INGLIS JOHN C
Director
$1,193
@ $79.53 · 2025-09-30
INGLIS JOHN C
Director
$50,307
@ $77.04 · 2025-08-08
INGLIS JOHN C
Director
$895.00
@ $89.50 · 2025-06-27
INGLIS JOHN C
Director
$50,658
@ $78.66 · 2025-03-31
RICE JOHN G
Director
$770,000
@ $77.00 · 2025-02-13
INGLIS JOHN C
Director
$787.00
@ $78.70 · 2024-12-30
INGLIS JOHN C
Director
$50,002
@ $75.76 · 2024-11-26
INGLIS JOHN C
Director
$520.00
@ $74.29 · 2024-09-30
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)
0
Sells (12M)
No open market insider sales found.
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
AIG
0
Sells (3M)
0
Sells (12M)
CARBONE KATHLEEN
Officer
$2.53M
@ $84.06 · 2025-05-20
GLAZER ROSE MARIE E
General Counsel
$2.94M
@ $84.02 · 2025-05-16
WADE CLAUDE E.
Officer
$1.88M
@ $83.57 · 2025-05-05
TWININGDAVIS MELISSA
Officer
$776,072
@ $83.26 · 2025-05-05
FLATT CHRISTOPHER
Officer
$3.85M
@ $83.26 · 2025-05-05
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

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ABBV
FearGreed
😏Greed(61/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

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.
AIG
FearGreed
😐Neutral(53/100)

"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.

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

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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: Greed (61)
AIG
⚪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 (53)
View ABBV Full AnalysisView AIG Full Analysis

Frequently Asked Questions: ABBV vs AIG

Is AbbVie Inc. or American International Group, I more undervalued in 2026?▼

Based on our discounted cash flow model, AIG trades at a 100.0% margin of safety (intrinsic value $79560606442 vs. price $79), compared to ABBV's -40.7% margin of safety (intrinsic $178 vs. $251).

Which stock has a wider economic moat, AbbVie Inc. or American International Group, I?▼

ABBV scores 82/100 (Wide moat), while AIG scores 80/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is American International Group, I in financial distress?▼

AIG's Altman Z-Score of 0.5 places it in the Distress zone, signaling elevated bankruptcy risk. ABBV scores 2.4 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, AbbVie Inc. or American International Group, I?▼

ABBV earns 27.6% ROIC versus AIG's 7.9%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, AbbVie Inc.'s or American International Group, I's?▼

AIG's dividend earns a safety score of 85/100 (Very Safe), compared to ABBV's 39/100 (Unsafe). AIG has raised its dividend for 0 consecutive years.