Compare Stocks › ABBV vs DIS

AbbVie Inc. (ABBV) vs Walt Disney Company (The) (DIS): 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%. DIS is undervalued at $96, with an intrinsic value of $254584003147 and a margin of safety of 100%. Of the two, DIS has the wider margin of safety.

ABBV

AbbVie Inc.

$250.94

DIS

Walt Disney Company (The)

$96.19

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.

DIS

★Free cash flow has grown at a 111.4% CAGR over the past 4 years, demonstrating strong earnings power growth.
★Each dollar of retained earnings has created $6.06 of earning power — management is an exceptional capital allocator.
★Management has timed buybacks well — 2 out of 2 years showed value-accretive repurchases.

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.

DIS

⚠PEG ratio of 2.24 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
⚠Altman Z-Score of 1.08 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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ABBV

DIS

Valuation

N/A

Free Cash Flow

$10.08B

N/A

FCF Yield

0.00%

70.89

Trailing P/E

15.39

15.41

Forward P/E

12.90

Quality & Moat

27.60%

ROIC

7.33%

N/A

ROE

11.01%

72.79%

Gross Margin

37.16%

0.41

PEG Ratio

2.24

Balance Sheet Safety

N/A

Net Debt / Equity

0.36

N/A

Interest Coverage

N/A

2.06

Net Debt / EBITDA

2.11

2.76%

Dividend Yield

1.56%

ABBV: 4Ties: 2DIS: 2

ABBVDIS

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.

DIS

$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

DIS

$0.00

created per $1 retained over 3 years

Value Destroyer

Σ Retained

$16.56B

Δ Market Cap

+$26.89

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

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $178.31

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

DIS

100.0% Margin of Safety

Price is 100.0% below estimated fair value

Current Price: $96.19

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $254584003146.76

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.

DIS

What growth rate is the market pricing in at $96?

-18.7%

Market-Implied Owner Earnings Growth

Standard FCF implies -15.2%

The market implies -18.7% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -15.2%, 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.

DIS

51/100

Narrow Moat

70+ Wide · 40-69 Narrow · <40 None

Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.

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.

DIS

-2.61

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

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.

DIS

Insiders 0.1%Institutions 77.8%Retail & Other 22.2%

No. of Institutional Holders3,833

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

Buys (3M)

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

DIS

Buys (3M)

Buys (12M)

Total value (12M): $2.11M

CHANG AMY L

Director

$98,791

@ $107.85 · 2026-02-12

GORMAN JAMES P

Director

$2.01M

@ $111.89 · 2025-12-12

MCDONALD CALVIN

Director

$999,994

@ $85.06 · 2024-08-08

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

Sells (3M)

Sells (12M)

Total value (12M): $21.79M

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

SIATIS PERRY C.

General Counsel

$5.82M

@ $208.69 · 2025-03-03

GONZALEZ RICHARD A

Director

$20.26M

@ $205.45 · 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

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

DIS

Sells (3M)

Sells (12M)

Total value (12M): $792,757

COLEMAN SONIA L

Officer

$281,922

@ $114.00 · 2026-01-22

COLEMAN SONIA L

Officer

$277,134

@ $114.00 · 2025-12-24

COLEMAN SONIA L

Officer

$233,701

@ $118.57 · 2025-08-25

WOODFORD BRENT A

Officer

$110,845

@ $110.84 · 2025-05-13

COLEMAN SONIA L

Officer

$74,936

@ $108.76 · 2025-01-22

COLEMAN SONIA L

Officer

$342,766

@ $111.36 · 2024-12-17

WOODFORD BRENT A

Officer

$917,920

@ $114.74 · 2024-12-11

IGER ROBERT A

Chief Executive Officer

$42.67M

@ $114.57 · 2024-11-22

WOODFORD BRENT A

Officer

$568,101

@ $113.62 · 2024-11-20

COLEMAN SONIA L

Officer

$279,772

@ $99.99 · 2024-11-11

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

😏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.

DIS

😐Neutral(46/100)

"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

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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)

DIS

⚪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 (46)

View ABBV Full Analysis View DIS Full Analysis

Frequently Asked Questions: ABBV vs DIS

Is AbbVie Inc. or Walt Disney Company (The) more undervalued in 2026?▼

Based on our discounted cash flow model, DIS trades at a 100.0% margin of safety (intrinsic value $254584003147 vs. price $96), compared to ABBV's -40.7% margin of safety (intrinsic $178 vs. $251).

Which stock has a wider economic moat, AbbVie Inc. or Walt Disney Company (The)?▼

ABBV scores 82/100 (Wide moat), while DIS scores 51/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Walt Disney Company (The) in financial distress?▼

DIS's Altman Z-Score of 1.1 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 stock has higher return on invested capital, AbbVie Inc. or Walt Disney Company (The)?▼

ABBV earns 27.6% ROIC versus DIS's 7.3%. 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 Walt Disney Company (The)'s?▼

DIS's dividend earns a safety score of 88/100 (Very Safe), compared to ABBV's 39/100 (Unsafe). DIS has raised its dividend for 1 consecutive years.