Compare StocksABBV vs GEHC

AbbVie Inc. (ABBV) vs GE HealthCare Technologies Inc. (GEHC): Which Is the Better Buy in 2026?

As of 2026-06-21, ABBV is overvalued at $216, with a DCF intrinsic value of $160 and a margin of safety of -35%. GEHC is undervalued at $62, with an intrinsic value of $100 and a margin of safety of 38%. Of the two, GEHC has the wider margin of safety.

ABBV
AbbVie Inc.
$216.49
VS
GEHC
GE HealthCare Technologies Inc.
$61.59

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.
GEHC
  • GE HealthCare Technologies Inc. scores 93/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
  • 8 insider purchases totaling $6.4M with no sells in the past 3 months — insiders are putting their own money in.

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 106.1x is 70% above the historical average of 62.3x — the stock trades at a premium to its own history.
GEHC
  • FCF yield of 5.3% suggests reasonable valuation assuming continued moderate growth.
  • Free cash flow has declined at a 5.8% CAGR over the past 4 years — a concerning trend.

Key Valuation Metrics

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ABBV
GEHC
Valuation
$20.81B
Free Cash Flow
$1.48B
5.44%
FCF Yield
5.30%
106.12
Trailing P/E
14.77
13.32
Forward P/E
11.48
Quality & Moat
21.89%
ROIC
8.56%
N/A
ROE
19.46%
72.03%
Gross Margin
39.14%
0.60
PEG Ratio
1.74
Balance Sheet Safety
N/A
Net Debt / Equity
0.76
N/A
Interest Coverage
N/A
2.12
Net Debt / EBITDA
2.36
3.20%
Dividend Yield
0.23%
ABBV: 6Ties: 2GEHC: 2
ABBVGEHC

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.

GEHC

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
GEHC
$1.98
created per $1 retained over 3 years
Value Creator
Σ Retained
$5.49B
Δ Market Cap
+$10.87B
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
GEHC
38.2% Margin of Safety
Price is 38.2% below estimated fair value
Current Price: $61.59
Fair Value: $99.71
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.

GEHC

What growth rate is the market pricing in at $62?

+5.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +10.5%

The market implies +5.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +10.5%, 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.
GEHC
93/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Revenue Predictability 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.
GEHC
-2.36
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 76.8%Retail & Other 23.0%
No. of Institutional Holders5,110
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.
GEHC
Insiders 0.4%Institutions 93.9%Retail & Other 5.8%
No. of Institutional Holders1,754
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
GEHC
8
Buys (3M)
8
Buys (12M)
Total value (12M): $6.42M
LOBO KEVIN A
Director
$641,800
@ $64.18 · 2026-05-22
HOCHMAN RODNEY F
Director
$100,365
@ $62.03 · 2026-05-12
YANG WATKIN PHOEBE L
Director
$63,006
@ $63.01 · 2026-05-08
CULP HENRY LAWRENCE JR.
Director
$5.00M
@ $61.88 · 2026-05-06
STROMBERG WILLIAM J
Director
$61,689
@ $61.69 · 2026-05-06
SACCARO JAMES
Chief Financial Officer
$200,585
@ $60.60 · 2026-05-01
ARDUINI PETER J
Chief Executive Officer
$249,827
@ $59.92 · 2026-04-30
JIMENEZ FRANK R
General Counsel
$105,788
@ $60.45 · 2026-04-30
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
GEHC
0
Sells (3M)
0
Sells (12M)
NEWCOMB GEORGE A.
Officer
$185,080
@ $92.54 · 2025-02-18
ROTT ROLAND
Officer
$309,339
@ $86.48 · 2024-11-06
RACKLIFFE PHILIP
Chief Executive Officer
$78,867
@ $87.63 · 2024-11-05
STACHERSKI KENNETH ROBERT
Officer
$1.58M
@ $83.22 · 2024-08-14
WESTRICK THOMAS J
Officer
$222,145
@ $80.78 · 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
😐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.
GEHC
FearGreed
😨Fear(37/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

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)
GEHC
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: Fear (37)
View ABBV Full AnalysisView GEHC Full Analysis

Frequently Asked Questions: ABBV vs GEHC

Is AbbVie Inc. or GE HealthCare Technologies Inc. more undervalued in 2026?

Based on our discounted cash flow model, GEHC trades at a 38.2% margin of safety (intrinsic value $100 vs. price $62), compared to ABBV's -35.3% margin of safety (intrinsic $160 vs. $216).

Which stock has a wider economic moat, AbbVie Inc. or GE HealthCare Technologies Inc.?

GEHC scores 93/100 (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 GE HealthCare Technologies Inc. in financial distress?

GEHC's Altman Z-Score of 2.0 places it in the Grey 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 GE HealthCare Technologies Inc.?

AbbVie Inc. (ABBV) generates a 5.4% free cash flow yield, compared to GE HealthCare Technologies Inc.'s 5.3%. 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 GE HealthCare Technologies Inc.?

ABBV earns 21.9% ROIC versus GEHC's 8.6%. 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 GE HealthCare Technologies Inc.'s?

GEHC's dividend earns a safety score of 91/100 (Very Safe), compared to ABBV's 39/100 (Unsafe). GEHC has raised its dividend for 2 consecutive years.