Compare Stocks › ABBV vs HUM

AbbVie Inc. (ABBV) vs Humana Inc. (HUM): Which Is the Better Buy in 2026?

As of 2026-11-01, ABBV is overvalued at $295, with a DCF intrinsic value of $172 and a margin of safety of -71%. HUM is undervalued at $415, with an intrinsic value of $1003 and a margin of safety of 59%. Of the two, HUM has the wider margin of safety.

ABBV

AbbVie Inc.

$294.89

HUM

Humana Inc.

$414.50

Rewards

ABBV

★AbbVie Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
★Gross margin of 73.7% 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.

HUM

★Humana Inc. scores 98/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
★Altman Z-Score of 4.08 indicates very low bankruptcy risk — the company is firmly in the safe zone.
★Net debt/EBITDA of -2.5x means the company holds more cash than debt — a net cash position.

Risks

ABBV

⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
⚠Insiders have sold $8.2M worth of stock in the past 3 months — significant insider liquidation.
⚠Free cash flow has declined at a 9.8% CAGR over the past 4 years — a concerning trend.

HUM

⚠Gross margin of 13.7% is low, suggesting a competitive or commodity-like market with limited pricing power.
⚠Trailing P/E of 39.2x is 61% above the historical average of 24.3x — the stock trades at a premium to its own history.
⚠Free cash flow has declined at a 52.3% CAGR over the past 4 years — a concerning trend.

Key Valuation Metrics

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ABBV

HUM

Valuation

N/A

Free Cash Flow

$1.94B

N/A

FCF Yield

3.90%

50.67

Trailing P/E

39.18

18.24

Forward P/E

24.26

Quality & Moat

29.08%

ROIC

11.72%

N/A

ROE

6.89%

73.72%

Gross Margin

13.65%

0.60

PEG Ratio

1.14

Balance Sheet Safety

N/A

Net Debt / Equity

Net cash

N/A

Interest Coverage

N/A

2.03

Net Debt / EBITDA

-2.54

2.35%

Dividend Yield

0.85%

ABBV: 5Ties: 1HUM: 2

ABBVHUM

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.

HUM

$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

HUM

$-9.22

created per $1 retained over 3 years

Market Cap Declined

Σ Retained

$3.59B

Δ Market Cap

$-33.12B

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

71.5% Overvalued

Price is 71.5% above estimated fair value

Current Price: $294.89

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $172.00

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

HUM

58.7% Margin of Safety

Price is 58.7% below estimated fair value

Current Price: $414.50

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $1003.29

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.

HUM

What growth rate is the market pricing in at $415?

+12.1%

Market-Implied Owner Earnings Growth

Standard FCF implies +8.3%

The market implies +12.1% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +8.3%, 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.

HUM

98/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.

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.

HUM

-2.27

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 77.4%Retail & Other 22.5%

No. of Institutional Holders5,303

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.

HUM

Insiders 0.2%Institutions 101.4%

No. of Institutional Holders1,327

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

HUM

Buys (3M)

Buys (12M)

Total value (12M): $150,016

SHETTY SANJAY K

Officer

$150,016

@ $185.20 · 2026-02-23

RECHTIN JAMES A.

Chief Executive Officer

$1.50M

@ $229.25 · 2025-05-14

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): $18.92M

DONOGHOE NICHOLAS

Officer

$8.18M

@ $250.00 · 2026-08-14

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

GONZALEZ RICHARD A

Director

$20.26M

@ $205.45 · 2025-03-03

RICHMOND TIMOTHY J

Officer

$4.47M

@ $210.45 · 2025-03-03

SIATIS PERRY C.

General Counsel

$5.82M

@ $208.69 · 2025-03-03

RICHMOND TIMOTHY J

Officer

$6.07M

@ $202.90 · 2025-02-26

BUCKBEE KEVIN K

Officer

$3.85M

@ $203.41 · 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

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

HUM

Sells (3M)

Sells (12M)

HUVAL TIMOTHY S.

Officer

$948,925

@ $256.26 · 2024-12-31

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(72/100)

"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.

HUM

😐Neutral(54/100)

"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 (72)

HUM

⚪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 Analysis View HUM Full Analysis

Frequently Asked Questions: ABBV vs HUM

Is AbbVie Inc. or Humana Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, HUM trades at a 58.7% margin of safety (intrinsic value $1003 vs. price $415), compared to ABBV's -71.5% margin of safety (intrinsic $172 vs. $295).

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

HUM scores 98/100 (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. HUM scores 4.1 (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 Humana Inc.?▼

ABBV earns 29.1% ROIC versus HUM's 11.7%. 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 Humana Inc.'s?▼

HUM's dividend earns a safety score of 55/100 (Borderline), compared to ABBV's 39/100 (Unsafe). HUM has raised its dividend for 0 consecutive years.