Compare Stocks › ABBV vs HD

AbbVie Inc. (ABBV) vs Home Depot, Inc. (The) (HD): 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%. HD is undervalued at $332, with an intrinsic value of $248851992757 and a margin of safety of 100%. Of the two, HD has the wider margin of safety.

ABBV

AbbVie Inc.

$250.94

Home Depot, Inc. (The)

$331.96

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.

★Home Depot, Inc. (The) has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★Home Depot, Inc. (The) scores 87/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.

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.

⚠High leverage (4.48x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
⚠11 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.

Key Valuation Metrics

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ABBV

Valuation

N/A

Free Cash Flow

$10.13B

N/A

FCF Yield

N/A

70.89

Trailing P/E

23.58

15.41

Forward P/E

20.63

Quality & Moat

27.60%

ROIC

20.22%

N/A

ROE

128.38%

72.79%

Gross Margin

33.13%

0.41

PEG Ratio

1.87

Balance Sheet Safety

N/A

Net Debt / Equity

4.48

N/A

Interest Coverage

N/A

2.06

Net Debt / EBITDA

2.49

2.76%

Dividend Yield

2.81%

ABBV: 5Ties: 2HD: 1

ABBVHD

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.

$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

$-0.00

created per $1 retained over 3 years

Market Cap Declined

Σ Retained

$17.64B

Δ Market Cap

$-14.59

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

100.0% Margin of Safety

Price is 100.0% below estimated fair value

Current Price: $331.96

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $248851992757.04

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.

What growth rate is the market pricing in at $332?

-14.7%

Market-Implied Owner Earnings Growth

Standard FCF implies -9.0%

The market implies -14.7% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -9.0%, 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.

87/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Margin Stability is the standout factor.

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.

-2.40

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.

Insiders 0.1%Institutions 75.9%Retail & Other 24.1%

No. of Institutional Holders5,059

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

Buys (3M)

Buys (12M)

BRENNEMAN GREGORY D

Director

$999,767

@ $346.66 · 2025-03-14

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

Sells (3M)

Sells (12M)

Total value (12M): $23.56M

MCPHAIL RICHARD V

Chief Financial Officer

$940,670

@ $368.89 · 2026-03-04

DEATON JOHN A.

Officer

$661,617

@ $369.00 · 2026-03-04

ROSEBOROUGH TERESA WYNN

General Counsel

$1.00M

@ $348.52 · 2025-12-26

BROWN ANGIE

Chief Technology Officer

$695,948

@ $357.63 · 2025-12-12

BASTEK WILLIAM D

Officer

$974,445

@ $423.12 · 2025-09-12

BASTEK WILLIAM D

Officer

$1.55M

@ $410.23 · 2025-08-22

ROSEBOROUGH TERESA WYNN

General Counsel

$2.27M

@ $413.23 · 2025-08-22

DECKER EDWARD P.

Chief Executive Officer

$13.07M

@ $397.22 · 2025-08-21

BROWN ANGIE

Chief Technology Officer

$404,070

@ $404.07 · 2025-08-20

MCPHAIL RICHARD V

Chief Financial Officer

$1.36M

@ $403.66 · 2025-08-20

PADILLA HECTOR A

Officer

$640,609

@ $404.17 · 2025-08-20

DEATON JOHN A.

Officer

$3.29M

@ $369.99 · 2025-06-03

ROSEBOROUGH TERESA WYNN

General Counsel

$2.00M

@ $369.28 · 2025-05-28

SIDDIQUI FAHIM

Chief Technology Officer

$954,564

@ $367.14 · 2025-05-22

BASTEK WILLIAM D

Officer

$1.24M

@ $416.61 · 2024-11-22

HOURIGAN TIMOTHY A

Officer

$6.55M

@ $409.52 · 2024-11-18

PADILLA HECTOR A

Officer

$1.48M

@ $408.96 · 2024-11-14

CAMPBELL ANN-MARIE

Officer

$12.24M

@ $408.40 · 2024-11-14

ROSEBOROUGH TERESA WYNN

General Counsel

$9.03M

@ $408.91 · 2024-11-14

MCPHAIL RICHARD V

Chief Financial Officer

$2.65M

@ $408.45 · 2024-11-13

SCARDINO KIMBERLY R.

Officer

$617,100

@ $363.00 · 2024-08-19

ROSEBOROUGH TERESA WYNN

General Counsel

$1.87M

@ $359.32 · 2024-08-15

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.

😐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)

⚪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 HD Full Analysis

Frequently Asked Questions: ABBV vs HD

Is AbbVie Inc. or Home Depot, Inc. (The) more undervalued in 2026?▼

Based on our discounted cash flow model, HD trades at a 100.0% margin of safety (intrinsic value $248851992757 vs. price $332), compared to ABBV's -40.7% margin of safety (intrinsic $178 vs. $251).

Which stock has a wider economic moat, AbbVie Inc. or Home Depot, Inc. (The)?▼

HD scores 87/100 (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. HD scores 3.5 (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 Home Depot, Inc. (The)?▼

ABBV earns 27.6% ROIC versus HD's 20.2%. 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 Home Depot, Inc. (The)'s?▼

HD's dividend earns a safety score of 69/100 (Safe), compared to ABBV's 39/100 (Unsafe). HD has raised its dividend for 3 consecutive years.