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Compare Stocks › ABBV vs DHI

AbbVie Inc. (ABBV) vs D.R. Horton, Inc. (DHI): Which Is the Better Buy in 2026?

As of 2026-11-01, ABBV is overvalued at $295, with a DCF intrinsic value of $172 and a margin of safety of -71%. DHI is undervalued at $146, with an intrinsic value of $807 and a margin of safety of 82%. Of the two, DHI has the wider margin of safety.

ABBV
AbbVie Inc.
$294.89
VS
DHI
D.R. Horton, Inc.
$146.00

Rewards

ABBV
  • ★AbbVie Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Gross margin of 73.7% 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.
DHI
  • ★D.R. Horton, Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Free cash flow has grown at a 99.5% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Share count has been reduced by 14% over the past 4 years through buybacks, increasing each share's claim on earnings.

Risks

ABBV
  • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
  • ⚠Insiders have sold $8.2M worth of stock in the past 3 months — significant insider liquidation.
  • ⚠Free cash flow has declined at a 9.8% CAGR over the past 4 years — a concerning trend.
DHI
  • ⚠Gross margin of 20.6% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Trailing P/E of 14.4x is 51% above the historical average of 9.6x — the stock trades at a premium to its own history.

Key Valuation Metrics

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ABBV
DHI
Valuation
N/A
Free Cash Flow
$7.82B
N/A
FCF Yield
19.72%
50.67
Trailing P/E
14.44
18.24
Forward P/E
12.03
Quality & Moat
29.08%
ROIC
10.15%
N/A
ROE
12.12%
73.72%
Gross Margin
20.58%
0.60
PEG Ratio
1.23
Balance Sheet Safety
N/A
Net Debt / Equity
0.17
N/A
Interest Coverage
N/A
2.03
Net Debt / EBITDA
1.05
2.35%
Dividend Yield
1.37%
ABBV: 4Ties: 1DHI: 3
ABBVDHI

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.

DHI

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
DHI
$0.99
created per $1 retained over 3 years
Mediocre Allocator
Σ Retained
$11.86B
Δ Market Cap
+$11.75B
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
71.5% Overvalued
Price is 71.5% above estimated fair value
Current Price: $294.89
Fair Value: $172.00
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
DHI
75.9% Margin of Safety
Price is 75.9% below estimated fair value
Current Price: $146.00
Fair Value: $605.21
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.

DHI

What growth rate is the market pricing in at $146?

+0.9%
Market-Implied Owner Earnings Growth
Standard FCF implies -10.4%

The market implies +0.9% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding -10.4%, 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.
DHI
66/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with reinvestment efficiency as the key competitive advantage. Improving margin stability would strengthen the moat.

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.
DHI
-2.50
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 77.4%Retail & Other 22.5%
No. of Institutional Holders5,303
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.
DHI
Insiders 10.7%Institutions 90.3%
No. of Institutional Holders1,648
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
DHI
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
1
Sells (3M)
4
Sells (12M)
Total value (12M): $18.92M
DONOGHOE NICHOLAS
Officer
$8.18M
@ $250.00 · 2026-08-14
PURDUE DAVID RYAN
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
RICHMOND TIMOTHY J
Officer
$4.47M
@ $210.45 · 2025-03-03
SIATIS PERRY C.
General Counsel
$5.82M
@ $208.69 · 2025-03-03
RICHMOND TIMOTHY J
Officer
$6.07M
@ $202.90 · 2025-02-26
BUCKBEE KEVIN K
Officer
$3.85M
@ $203.41 · 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
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
DHI
0
Sells (3M)
1
Sells (12M)
Total value (12M): $43,563
ODOM ARON M
Officer
$43,563
@ $167.55 · 2026-02-13
AULD DAVID V
Officer and Director
$5.47M
@ $182.21 · 2025-09-05
BUCHANAN MICHAEL R
Director
$180,740
@ $180.74 · 2025-09-05
ODOM ARON M
Officer
$251,808
@ $183.00 · 2025-09-05
ODOM ARON M
Officer
$204,925
@ $166.20 · 2025-08-13
BUCHANAN MICHAEL R
Director
$274,552
@ $127.70 · 2025-06-24
ALLEN BARBARA K
Director
$921,515
@ $163.10 · 2024-11-21
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(72/100)

"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.
DHI
FearGreed
😐Neutral(51/100)

"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 (72)
DHI
⚪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 (51)
View ABBV Full AnalysisView DHI Full Analysis

Frequently Asked Questions: ABBV vs DHI

Is AbbVie Inc. or D.R. Horton, Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, DHI trades at a 81.9% margin of safety (intrinsic value $807 vs. price $146), compared to ABBV's -71.5% margin of safety (intrinsic $172 vs. $295).

Which stock has a wider economic moat, AbbVie Inc. or D.R. Horton, Inc.?▼

ABBV scores 82/100 (Wide moat), while DHI scores 66/100 (Narrow 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. DHI scores 6.1 (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 stock has higher return on invested capital, AbbVie Inc. or D.R. Horton, Inc.?▼

ABBV earns 29.1% ROIC versus DHI's 10.1%. 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 D.R. Horton, Inc.'s?▼

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

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