SafetyMargin.ioSafetyMargin.io
BlogWatchlistCompare
Compare Stocks › ABBV vs KMB

AbbVie Inc. (ABBV) vs Kimberly-Clark Corporation (KMB): 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%. KMB is overvalued at $108, with an intrinsic value of $76 and a margin of safety of -42%. Of the two, KMB has the wider margin of safety.

ABBV
AbbVie Inc.
$294.89
VS
KMB
Kimberly-Clark Corporation
$107.94

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.
KMB
  • ★Kimberly-Clark Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Kimberly-Clark Corporation scores 78/100 on the Economic Moat Score (Wide Moat), with roic consistency 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.
  • ⚠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.
KMB
  • ⚠PEG ratio of 2.23 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠High leverage (2.98x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.

Key Valuation Metrics

Learn more →
ABBV
KMB
Valuation
N/A
Free Cash Flow
$1.64B
N/A
FCF Yield
4.57%
50.67
Trailing P/E
21.29
18.24
Forward P/E
14.53
Quality & Moat
29.08%
ROIC
29.59%
N/A
ROE
104.91%
73.72%
Gross Margin
37.61%
0.60
PEG Ratio
2.23
Balance Sheet Safety
N/A
Net Debt / Equity
2.98
N/A
Interest Coverage
N/A
2.03
Net Debt / EBITDA
1.60
2.35%
Dividend Yield
4.74%
ABBV: 2Ties: 2KMB: 4
ABBVKMB

Historical Fundamentals

Learn more →
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.

KMB

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

Learn more →
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
KMB
$-8.48
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.45B
Δ Market Cap
$-12.33B
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

Learn more →
ABBV
71.5% Overvalued
Price is 71.5% above estimated fair value
Current Price: $294.89
Fair Value: $172.00
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
KMB
41.6% Overvalued
Price is 41.6% above estimated fair value
Current Price: $107.94
Fair Value: $76.24
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

Learn more →
ABBV

Requires positive FCF to compute implied growth rate.

KMB

What growth rate is the market pricing in at $108?

+8.1%
Market-Implied Owner Earnings Growth
Standard FCF implies +10.9%

The market implies +8.1% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +10.9%, reflecting ongoing growth investment.

Economic Moat Score

Learn more →
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.
KMB
78/100
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 4 years of fundamental data.

Forensic Accounting

Learn more →
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.
KMB
-2.54
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

Learn more →
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.
KMB
Insiders 0.7%Institutions 99.1%Retail & Other 0.2%
No. of Institutional Holders2,181
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

Learn more →
ABBV
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
KMB
0
Buys (3M)
1
Buys (12M)
Total value (12M): $1.04M
MACLIN SAMUEL TODD
Director
$1.04M
@ $104.15 · 2026-02-09
MACLIN SAMUEL TODD
Director
$38,775
@ $145.77 · 2025-04-09
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

Learn more →
ABBV
1
Sells (3M)
4
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
KMB
0
Sells (3M)
4
Sells (12M)
Total value (12M): $1.01M
SCRIBNER ANDREW
Officer
$401,310
@ $98.00 · 2026-05-06
CHEN KATY
Officer
$152,164
@ $95.34 · 2026-05-04
CHEN KATY
Officer
$136,222
@ $96.96 · 2026-04-30
SCRIBNER ANDREW
Officer
$317,980
@ $104.29 · 2026-02-05
HICKS ZACKERY ALLEN
Chief Technology Officer
$2.01M
@ $133.40 · 2025-08-04
CHEN KATY
Officer
$95,978
@ $129.70 · 2025-05-02
CHEN KATY
Officer
$234,545
@ $130.74 · 2025-04-29
DREXLER ANDREW CPA
Officer
$1.53M
@ $141.00 · 2025-02-28
DREXLER ANDREW CPA
Officer
$350,000
@ $140.00 · 2025-02-21
DREXLER ANDREW CPA
Officer
$417,036
@ $139.01 · 2024-11-22
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
😏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.
KMB
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

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: Greed (72)
KMB
⚪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 KMB Full Analysis

Frequently Asked Questions: ABBV vs KMB

Is AbbVie Inc. or Kimberly-Clark Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, KMB trades at a -41.6% margin of safety (intrinsic value $76 vs. price $108), compared to ABBV's -71.5% margin of safety (intrinsic $172 vs. $295).

Which stock has a wider economic moat, AbbVie Inc. or Kimberly-Clark Corporation?▼

ABBV scores 82/100 (Wide moat), while KMB scores 78/100 (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. KMB scores 3.4 (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 Kimberly-Clark Corporation?▼

KMB earns 29.6% ROIC versus ABBV's 29.1%. 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 Kimberly-Clark Corporation's?▼

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

ABBV vs KMB: Which Is the Better Buy in 2026? | SafetyMargin.io