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AbbVie Inc. (ABBV) vs Avery Dennison Corporation (AVY): 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%. AVY is undervalued at $170, with an intrinsic value of $17021531877 and a margin of safety of 100%. Of the two, AVY has the wider margin of safety.

ABBV
AbbVie Inc.
$250.94
VS
AVY
Avery Dennison Corporation
$169.73

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.
AVY
  • ★Avery Dennison Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Avery Dennison Corporation scores 86/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
  • ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.

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.
AVY

    Key Valuation Metrics

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    ABBV
    AVY
    Valuation
    N/A
    Free Cash Flow
    $957.20M
    N/A
    FCF Yield
    N/A
    70.89
    Trailing P/E
    18.55
    15.41
    Forward P/E
    15.11
    Quality & Moat
    27.60%
    ROIC
    16.54%
    N/A
    ROE
    31.16%
    72.79%
    Gross Margin
    28.98%
    0.41
    PEG Ratio
    1.92
    Balance Sheet Safety
    N/A
    Net Debt / Equity
    1.49
    N/A
    Interest Coverage
    N/A
    2.06
    Net Debt / EBITDA
    2.31
    2.76%
    Dividend Yield
    2.36%
    ABBV: 5Ties: 2AVY: 1
    ABBVAVY

    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.

    AVY

    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
    AVY
    $0.00
    created per $1 retained over 3 years
    Value Destroyer
    Σ Retained
    $1.07B
    Δ Market Cap
    +$0.88
    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
    AVY
    100.0% Margin of Safety
    Price is 100.0% below estimated fair value
    Current Price: $169.73
    Fair Value: $17021531877.17
    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.

    AVY

    What growth rate is the market pricing in at $170?

    -14.8%
    Market-Implied Owner Earnings Growth
    Standard FCF implies -17.5%

    The market implies -14.8% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding -17.5%, 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.
    AVY
    86/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat with strength across all dimensions. Margin Stability 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.
    AVY
    -2.57
    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 Holders5,146
    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.
    AVY
    Insiders 0.6%Institutions 98.3%Retail & Other 1.1%
    No. of Institutional Holders1,109
    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
    AVY
    0
    Buys (3M)
    0
    Buys (12M)
    No open market insider purchases found.
    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
    AVY
    0
    Sells (3M)
    4
    Sells (12M)
    Total value (12M): $20.24M
    BUTIER MITCHELL R
    Director
    $5.71M
    @ $172.95 · 2026-03-12
    BUTIER MITCHELL R
    Director
    $7.03M
    @ $175.81 · 2026-03-10
    BUTIER MITCHELL R
    Director
    $7.28M
    @ $181.92 · 2026-03-06
    WALKER IGNACIO J
    Officer
    $223,050
    @ $192.95 · 2026-02-06
    BUTIER MITCHELL R
    Officer and Director
    $2.36M
    @ $181.85 · 2025-03-06
    BUTIER MITCHELL R
    Officer and Director
    $1.50M
    @ $186.19 · 2025-03-03
    COLISTO NICHOLAS R.
    Chief Technology Officer
    $757,856
    @ $206.00 · 2024-11-25
    BUTIER MITCHELL R
    Officer and Director
    $3.70M
    @ $216.43 · 2024-08-23
    BUTIER MITCHELL R
    Officer and Director
    $4.26M
    @ $213.04 · 2024-08-21
    BUTIER MITCHELL R
    Officer and Director
    $4.25M
    @ $212.40 · 2024-08-19
    BUTIER MITCHELL R
    Officer and Director
    $2.75M
    @ $211.29 · 2024-08-15
    BUTIER MITCHELL R
    Officer and Director
    $1.24M
    @ $207.39 · 2024-08-13
    BUTIER MITCHELL R
    Officer and Director
    $1.24M
    @ $206.77 · 2024-08-09
    BUTIER MITCHELL R
    Officer and Director
    $1.24M
    @ $206.12 · 2024-08-07
    BUTIER MITCHELL R
    Officer and Director
    $2.71M
    @ $208.47 · 2024-08-05
    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.
    AVY
    FearGreed
    😐Neutral(54/100)

    "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)
    AVY
    ⚪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 (54)
    View ABBV Full AnalysisView AVY Full Analysis

    Frequently Asked Questions: ABBV vs AVY

    Is AbbVie Inc. or Avery Dennison Corporation more undervalued in 2026?▼

    Based on our discounted cash flow model, AVY trades at a 100.0% margin of safety (intrinsic value $17021531877 vs. price $170), compared to ABBV's -40.7% margin of safety (intrinsic $178 vs. $251).

    Which stock has a wider economic moat, AbbVie Inc. or Avery Dennison Corporation?▼

    AVY scores 86/100 (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 Avery Dennison Corporation in financial distress?▼

    AVY's Altman Z-Score of 2.4 places it in the Grey 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 Avery Dennison Corporation?▼

    ABBV earns 27.6% ROIC versus AVY's 16.5%. 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 Avery Dennison Corporation's?▼

    AVY's dividend earns a safety score of 94/100 (Very Safe), compared to ABBV's 39/100 (Unsafe). AVY has raised its dividend for 3 consecutive years.

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