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Compare Stocks › ABBV vs HCA

AbbVie Inc. (ABBV) vs HCA Healthcare, Inc. (HCA): 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%. HCA is undervalued at $375, with an intrinsic value of $523 and a margin of safety of 28%. Of the two, HCA has the wider margin of safety.

ABBV
AbbVie Inc.
$216.49
VS
HCA
HCA Healthcare, Inc.
$375.17

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.
HCA
  • ★HCA Healthcare, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★HCA Healthcare, Inc. scores 95/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
  • ★Free cash flow has grown at a 23.1% CAGR over the past 4 years, demonstrating strong earnings power growth.

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.
HCA

    Key Valuation Metrics

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    ABBV
    HCA
    Valuation
    $20.81B
    Free Cash Flow
    $7.69B
    5.44%
    FCF Yield
    9.24%
    105.60
    Trailing P/E
    12.93
    13.32
    Forward P/E
    11.33
    Quality & Moat
    21.89%
    ROIC
    18.14%
    N/A
    ROE
    N/A
    72.03%
    Gross Margin
    41.61%
    0.61
    PEG Ratio
    1.20
    Balance Sheet Safety
    N/A
    Net Debt / Equity
    N/A
    N/A
    Interest Coverage
    N/A
    2.12
    Net Debt / EBITDA
    3.13
    3.11%
    Dividend Yield
    0.76%
    ABBV: 6Ties: 1HCA: 3
    ABBVHCA

    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.

    HCA

    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
    HCA
    $2.43
    created per $1 retained over 3 years
    Exceptional Value Creator
    Σ Retained
    $15.76B
    Δ Market Cap
    +$38.30B
    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
    HCA
    28.2% Margin of Safety
    Price is 28.2% below estimated fair value
    Current Price: $375.17
    Fair Value: $522.55
    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.

    HCA

    What growth rate is the market pricing in at $375?

    +7.3%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +5.6%

    The market implies +7.3% Owner Earnings growth, roughly in line with history — reasonably priced.

    Standard FCF implies +5.6%, reflecting ongoing 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.
    HCA
    95/100
    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 5 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.
    HCA
    -2.78
    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.
    HCA
    Insiders 16.2%Institutions 78.3%Retail & Other 5.5%
    No. of Institutional Holders1,952
    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
    HCA
    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
    HCA
    0
    Sells (3M)
    7
    Sells (12M)
    Total value (12M): $32.73M
    MCALEVEY MICHAEL R.
    Officer
    $903,537
    @ $533.37 · 2026-02-18
    WYATT CHRISTOPHER F
    Officer
    $2.02M
    @ $505.00 · 2026-02-11
    BERRES JENNIFER
    Officer
    $4.13M
    @ $514.58 · 2026-02-11
    HAZEN SAMUEL N
    Chief Executive Officer
    $21.48M
    @ $501.04 · 2026-02-03
    CUFFE MICHAEL S
    Officer
    $747,135
    @ $498.09 · 2026-02-03
    MCALEVEY MICHAEL R.
    Officer
    $1.84M
    @ $473.79 · 2025-11-05
    CUFFE MICHAEL S
    Officer
    $1.61M
    @ $418.84 · 2025-09-08
    FOSTER JON MARK
    Officer
    $5.80M
    @ $369.32 · 2025-05-13
    BERRES JENNIFER
    Officer
    $3.08M
    @ $322.59 · 2025-02-14
    BILLINGTON PHILLIP G
    Officer
    $1.36M
    @ $350.00 · 2024-11-14
    WHALEN KATHLEEN M
    Officer
    $527,677
    @ $357.99 · 2024-11-14
    AKDAMAR EROL R
    Officer
    $1.02M
    @ $353.00 · 2024-11-14
    CUFFE MICHAEL S
    Officer
    $3.22M
    @ $385.42 · 2024-09-12
    WHALEN KATHLEEN M
    Officer
    $1.76M
    @ $362.13 · 2024-07-31
    WYATT CHRISTOPHER F
    Officer
    $1.44M
    @ $360.20 · 2024-07-29
    REINER DEBORAH M
    Officer
    $1.19M
    @ $359.96 · 2024-07-29
    TORRES KATHRYN A
    Officer
    $659,328
    @ $355.05 · 2024-07-25
    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

    Learn more →
    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.
    HCA
    FearGreed
    😨Fear(39/100)

    "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

    Learn more →
    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)
    HCA
    ⚪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 (39)
    View ABBV Full AnalysisView HCA Full Analysis

    Frequently Asked Questions: ABBV vs HCA

    Is AbbVie Inc. or HCA Healthcare, Inc. more undervalued in 2026?▼

    Based on our discounted cash flow model, HCA trades at a 28.2% margin of safety (intrinsic value $523 vs. price $375), compared to ABBV's -35.3% margin of safety (intrinsic $160 vs. $216).

    Which stock has a wider economic moat, AbbVie Inc. or HCA Healthcare, Inc.?▼

    HCA scores 95/100 (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. HCA scores 2.7 (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 HCA Healthcare, Inc.?▼

    HCA Healthcare, Inc. (HCA) generates a 9.2% free cash flow yield, compared to AbbVie Inc.'s 5.4%. 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 HCA Healthcare, Inc.?▼

    ABBV earns 21.9% ROIC versus HCA's 18.1%. 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 HCA Healthcare, Inc.'s?▼

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