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Compare Stocks › ABBV vs AON

AbbVie Inc. (ABBV) vs Aon plc (AON)

ABBV
AbbVie Inc.
$206.60
VS
AON
Aon plc
$311.51

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 83/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
AON
  • ★Aon plc has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Aon plc scores 90/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
  • ★Each dollar of retained earnings has created $1.70 of earning power — management is creating shareholder value.

Risks

ABBV
  • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
  • ⚠Trailing P/E of 100.8x is 61% above the historical average of 62.5x — the stock trades at a premium to its own history.
  • ⚠Free cash flow has declined at a 9.8% CAGR over the past 4 years — a concerning trend.
AON
  • ⚠FCF yield of 5.0% suggests reasonable valuation assuming continued moderate growth.
  • ⚠Altman Z-Score of 1.80 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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ABBV
AON
Valuation
N/A
Free Cash Flow
$3.34B
N/A
FCF Yield
5.02%
100.78
Trailing P/E
18.31
12.77
Forward P/E
14.55
Quality & Moat
22.90%
ROIC
19.45%
N/A
ROE
37.02%
72.03%
Gross Margin
47.34%
0.57
PEG Ratio
0.68
Balance Sheet Safety
N/A
Debt / Equity
1.55
N/A
Interest Coverage
N/A
2.10
Net Debt / EBITDA
2.44
3.35%
Dividend Yield
1.05%
ABBV: 6Ties: 1AON: 1
ABBVAON

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.

AON

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$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
AON
$1.94
created per $1 retained over 3 years
Value Creator
Σ Retained
$7.23B
Δ Market Cap
+$14.04B
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
481.9% Overvalued
Price is 481.9% above estimated fair value
Current Price: $206.60
Fair Value: $35.50
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
AON
26.0% Margin of Safety
Price is 26.0% below estimated fair value
Current Price: $311.51
Fair Value: $420.88
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.

AON

What growth rate is the market pricing in at $312?

+8.9%
Market-Implied Owner Earnings Growth
Standard FCF implies +10.3%

The market implies +8.9% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +10.3%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

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ABBV
83/100
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.
AON
90/100
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.

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.
AON
-2.36
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 76.5%Retail & Other 23.4%
No. of Institutional Holders5,052
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.
AON
Insiders 2.9%Institutions 89.5%Retail & Other 7.7%
No. of Institutional Holders1,727
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
AON
1
Buys (3M)
1
Buys (12M)
Total value (12M): $1.28M
KNIGHT LESTER B III
Director
$1.28M
@ $319.24 · 2026-02-10
SPRUELL BYRON
Director
$246,558
@ $340.08 · 2024-08-28
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)
0
Sells (12M)
No open market insider sales found.
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
AON
2
Sells (3M)
3
Sells (12M)
Total value (12M): $6.09M
ZEIDEL DARREN
General Counsel
$1.42M
@ $329.72 · 2026-02-26
ZEIDEL DARREN
General Counsel
$1.64M
@ $325.79 · 2026-02-17
ZEIDEL DARREN
General Counsel
$3.03M
@ $344.52 · 2025-11-05
SIMON MINDY F
Chief Operating Officer
$256,321
@ $394.34 · 2024-11-27
STEVENS LISA
Officer
$494,295
@ $387.68 · 2024-11-26
ZEIDEL DARREN
General Counsel
$312,688
@ $329.15 · 2024-08-12
STEVENS LISA
Officer
$131,580
@ $328.95 · 2024-08-12
ZEIDEL DARREN
General Counsel
$2.05M
@ $310.00 · 2024-07-26
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
😐Neutral(52/100)

"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.
AON
FearGreed
😐Neutral(41/100)

"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: Neutral (52)
AON
⚪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 (41)
View ABBV Full AnalysisView AON Full Analysis
ABBV vs AON: Which Is the Better Buy? | SafetyMargin.io