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Compare Stocks › ABBV vs EQR

AbbVie Inc. (ABBV) vs Equity Residential (EQR): 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%. EQR is undervalued at $66, with an intrinsic value of $66942285763 and a margin of safety of 100%. Of the two, EQR has the wider margin of safety.

ABBV
AbbVie Inc.
$250.94
VS
EQR
Equity Residential
$66.45

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.
EQR
  • ★Gross margin of 62.3% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.

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.
EQR
  • ⚠PEG ratio of 16.10 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Net debt/EBITDA of 4.5x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
  • ⚠Altman Z-Score of 0.32 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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ABBV
EQR
Valuation
N/A
Free Cash Flow
$1.42B
N/A
FCF Yield
N/A
70.89
Trailing P/E
28.89
15.41
Forward P/E
42.42
Quality & Moat
27.60%
ROIC
3.54%
N/A
ROE
8.02%
72.79%
Gross Margin
62.34%
0.41
PEG Ratio
16.10
Balance Sheet Safety
N/A
Net Debt / Equity
0.78
N/A
Interest Coverage
N/A
2.06
Net Debt / EBITDA
4.51
2.76%
Dividend Yield
4.23%
ABBV: 5Ties: 1EQR: 2
ABBVEQR

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.

EQR

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
EQR
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-71.0M
Δ Market Cap
+$4.04
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
EQR
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $66.45
Fair Value: $66942285762.81
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.

EQR

What growth rate is the market pricing in at $66?

-12.8%
Market-Implied Owner Earnings Growth
Standard FCF implies -9.3%

The market implies -12.8% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -9.3%, 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.
EQR
60/100
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.

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.
EQR
-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.
EQR
Insiders 0.6%Institutions 99.0%Retail & Other 0.4%
No. of Institutional Holders1,066
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
EQR
0
Buys (3M)
0
Buys (12M)
GARECHANA ROBERT A
Chief Financial Officer
$279.00
@ $69.75 · 2025-03-17
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 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
EQR
0
Sells (3M)
6
Sells (12M)
Total value (12M): $914,846
KAUFMAN IAN
Officer
$57,776
@ $63.56 · 2026-02-18
MANELIS MICHAEL L
Chief Operating Officer
$154,387
@ $63.56 · 2026-02-18
CARRAWAY CATHERINE
Officer
$47,606
@ $63.56 · 2026-02-18
MANELIS MICHAEL L
Chief Operating Officer
$375,474
@ $65.13 · 2026-02-10
GARECHANA ROBERT A
Chief Investment Officer
$236,878
@ $65.13 · 2026-02-10
CARRAWAY CATHERINE
Officer
$42,725
@ $65.13 · 2026-02-10
CARRAWAY CATHERINE
Officer
$71,044
@ $70.55 · 2025-05-01
BRACKENRIDGE ALEXANDER
Chief Operating Officer
$897,796
@ $72.06 · 2025-02-06
KAUFMAN IAN
Officer
$46,263
@ $72.06 · 2025-02-06
MANELIS MICHAEL L
Chief Operating Officer
$683,761
@ $72.07 · 2025-02-06
FENSTER SCOTT J.
General Counsel
$384,800
@ $72.06 · 2025-02-06
GARECHANA ROBERT A
Chief Financial Officer
$309,426
@ $72.06 · 2025-02-06
CARRAWAY CATHERINE
Officer
$60,891
@ $72.06 · 2025-02-06
STERRETT STEPHEN E
Director
$151,713
@ $72.21 · 2025-02-05
MANELIS MICHAEL L
Chief Operating Officer
$143,000
@ $71.50 · 2024-11-07
CARRAWAY CATHERINE
Officer
$74,200
@ $74.20 · 2024-08-28
BRACKENRIDGE ALEXANDER
Chief Investment Officer
$813,094
@ $72.52 · 2024-08-22
KAUFMAN IAN
Officer
$466,848
@ $72.00 · 2024-08-21
FENSTER SCOTT J.
General Counsel
$214,992
@ $72.00 · 2024-08-21
MANELIS MICHAEL L
Chief Operating Officer
$213,750
@ $71.25 · 2024-08-07
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.
EQR
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)
EQR
⚪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 EQR Full Analysis

Frequently Asked Questions: ABBV vs EQR

Is AbbVie Inc. or Equity Residential more undervalued in 2026?▼

Based on our discounted cash flow model, EQR trades at a 100.0% margin of safety (intrinsic value $66942285763 vs. price $66), compared to ABBV's -40.7% margin of safety (intrinsic $178 vs. $251).

Which stock has a wider economic moat, AbbVie Inc. or Equity Residential?▼

ABBV scores 82/100 (Wide moat), while EQR scores 60/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Equity Residential in financial distress?▼

EQR's Altman Z-Score of 0.3 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 stock has higher return on invested capital, AbbVie Inc. or Equity Residential?▼

ABBV earns 27.6% ROIC versus EQR's 3.5%. 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 Equity Residential's?▼

ABBV's dividend earns a safety score of 39/100 (Unsafe), compared to EQR's 34/100 (Unsafe). ABBV has raised its dividend for 3 consecutive years.