AbbVie Inc. (ABBV) vs The Boeing Company (BA): 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%. BA is overvalued at $223, with an intrinsic value of $178 and a margin of safety of -25%. Of the two, BA has the wider margin of safety.
Rewards
- ★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.
Risks
- ⚠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.
- ⚠Gross margin of 4.8% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠The Boeing Company scores only 23/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
- ⚠Share count has increased by 31% over the past 4 years, diluting existing shareholders.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →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.
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
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $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
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $216?
The market implies +17.1% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +8.7%, reflecting heavy growth investment.
What growth rate is the market pricing in at $223?
Economic Moat Score
Learn more →Wide moat with strength across all dimensions. Reinvestment Efficiency is the standout factor.
No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
Forensic Accounting
Learn more →M-Score Trend
Insufficient data for Beneish M-Score calculation (requires 2+ years).
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
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pricing this stock without strong emotion in either direction"
"Market is pricing this stock without strong emotion in either direction"
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 →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: ABBV vs BA
Is AbbVie Inc. or The Boeing Company more undervalued in 2026?▼
Based on our discounted cash flow model, BA trades at a -25.1% margin of safety (intrinsic value $178 vs. price $223), compared to ABBV's -35.3% margin of safety (intrinsic $160 vs. $216).
Which stock has a wider economic moat, AbbVie Inc. or The Boeing Company?▼
ABBV scores 82/100 (Wide moat), while BA scores 23/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is The Boeing Company in financial distress?▼
BA's Altman Z-Score of 1.3 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 company has better free cash flow, AbbVie Inc. or The Boeing Company?▼
AbbVie Inc. (ABBV) generates a 5.4% free cash flow yield, compared to The Boeing Company's 1.5%. 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 The Boeing Company?▼
ABBV earns 21.9% ROIC versus BA's 2.2%. 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 The Boeing Company's?▼
BA's dividend earns a safety score of 70/100 (Safe), compared to ABBV's 39/100 (Unsafe). BA has raised its dividend for 0 consecutive years.