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Compare Stocks › ABBV vs CL

AbbVie Inc. (ABBV) vs Colgate-Palmolive Company (CL): 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%. CL is overvalued at $89, with an intrinsic value of $45 and a margin of safety of -98%. Of the two, ABBV has the wider margin of safety.

ABBV
AbbVie Inc.
$216.49
VS
CL
Colgate-Palmolive Company
$89.48

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.
CL
  • ★Colgate-Palmolive Company has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 60.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Colgate-Palmolive Company scores 98/100 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.
CL
  • ⚠High leverage (13.49x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠10 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.

Key Valuation Metrics

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ABBV
CL
Valuation
$20.81B
Free Cash Flow
$3.32B
5.44%
FCF Yield
4.64%
105.60
Trailing P/E
34.68
13.32
Forward P/E
22.13
Quality & Moat
21.89%
ROIC
40.64%
N/A
ROE
363.58%
72.03%
Gross Margin
60.06%
0.61
PEG Ratio
1.62
Balance Sheet Safety
N/A
Net Debt / Equity
13.49
N/A
Interest Coverage
N/A
2.12
Net Debt / EBITDA
1.33
3.11%
Dividend Yield
2.30%
ABBV: 6Ties: 1CL: 3
ABBVCL

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.

CL

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
CL
$-1.07
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.96B
Δ Market Cap
$-2.10B
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
CL
98.0% Overvalued
Price is 98.0% above estimated fair value
Current Price: $89.48
Fair Value: $45.20
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.

CL

What growth rate is the market pricing in at $89?

+15.5%
Market-Implied Owner Earnings Growth
Standard FCF implies +9.9%

The market implies +15.5% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +9.9%, reflecting heavy 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.
CL
98/100
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.
CL
-3.00
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.
CL
Insiders 0.1%Institutions 88.1%Retail & Other 11.8%
No. of Institutional Holders2,617
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
CL
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)
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
CL
2
Sells (3M)
10
Sells (12M)
Total value (12M): $26.11M
MALCOLM GREGORY
Officer
$203,412
@ $88.44 · 2026-05-15
MASSEY SALLY
Officer
$751,633
@ $87.41 · 2026-05-07
TSOURAPAS PANAGIOTIS
Officer
$4.78M
@ $95.57 · 2026-02-12
HAZLIN JOHN
Officer
$1.98M
@ $94.25 · 2026-02-10
MALCOLM GREGORY
Officer
$1.21M
@ $94.91 · 2026-02-06
MASSEY SALLY
Officer
$1.51M
@ $95.03 · 2026-02-05
WALLACE NOEL R
Chief Executive Officer
$4.28M
@ $93.91 · 2026-02-04
DANIELS JENNIFER M.
Officer
$2.08M
@ $94.34 · 2026-02-04
SUTULA STANLEY J III
Chief Financial Officer
$9.22M
@ $94.27 · 2026-02-04
MASSEY SALLY
Officer
$100,061
@ $80.89 · 2025-11-21
MASSEY SALLY
Officer
$200,183
@ $88.97 · 2025-05-15
MASSEY SALLY
Officer
$736,152
@ $92.02 · 2025-02-25
MALCOLM GREGORY
Officer
$101,121
@ $95.94 · 2024-11-26
WALLACE NOEL R
Chief Executive Officer
$3.17M
@ $95.00 · 2024-11-22
SUTULA STANLEY J III
Chief Financial Officer
$4.27M
@ $94.11 · 2024-11-05
SUTULA STANLEY J III
Chief Financial Officer
$4.68M
@ $93.53 · 2024-11-01
HUND-MEJEAN MARTINA
Director
$240,228
@ $103.86 · 2024-08-23
DANIELS JENNIFER M.
Officer
$2.26M
@ $102.76 · 2024-08-08
TSOURAPAS PANAGIOTIS
Officer
$1.52M
@ $102.94 · 2024-08-08
KOOYMAN JOHN W
Officer
$2.55M
@ $102.88 · 2024-08-06
MASSEY SALLY
Officer
$1.64M
@ $103.28 · 2024-08-06
MALCOLM GREGORY
Officer
$1.09M
@ $103.10 · 2024-08-06
TSOURAPAS PANAGIOTIS
Officer
$3.98M
@ $99.47 · 2024-07-31
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(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.
CL
FearGreed
😐Neutral(55/100)

"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 (56)
CL
⚪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 (55)
View ABBV Full AnalysisView CL Full Analysis

Frequently Asked Questions: ABBV vs CL

Is AbbVie Inc. or Colgate-Palmolive Company more undervalued in 2026?▼

Based on our discounted cash flow model, ABBV trades at a -35.3% margin of safety (intrinsic value $160 vs. price $216), compared to CL's -98.0% margin of safety (intrinsic $45 vs. $89).

Which stock has a wider economic moat, AbbVie Inc. or Colgate-Palmolive Company?▼

CL scores 98/100 (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. CL scores 6.7 (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 Colgate-Palmolive Company?▼

AbbVie Inc. (ABBV) generates a 5.4% free cash flow yield, compared to Colgate-Palmolive Company's 4.6%. 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 Colgate-Palmolive Company?▼

CL earns 40.6% 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.

Which dividend is safer, AbbVie Inc.'s or Colgate-Palmolive Company's?▼

CL's dividend earns a safety score of 64/100 (Safe), compared to ABBV's 39/100 (Unsafe). CL has raised its dividend for 3 consecutive years.