Compare Stocks › ABBV vs L

AbbVie Inc. (ABBV) vs Loews Corporation (L): 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%. L is undervalued at $111, with an intrinsic value of $610 and a margin of safety of 82%. Of the two, L has the wider margin of safety.

ABBV

AbbVie Inc.

$294.89

Loews Corporation

$111.32

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.

★Loews Corporation scores 97/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
★Share count has been reduced by 13% over the past 4 years through buybacks, increasing each share's claim on earnings.
★Each dollar of retained earnings has created $2.24 of earning power — management is an exceptional capital allocator.

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.

⚠Altman Z-Score of 0.69 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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ABBV

Valuation

N/A

Free Cash Flow

$2.70B

N/A

FCF Yield

11.86%

50.67

Trailing P/E

13.64

18.24

Forward P/E

38.39

Quality & Moat

29.08%

ROIC

7.41%

N/A

ROE

9.31%

73.72%

Gross Margin

36.29%

0.60

PEG Ratio

1.32

Balance Sheet Safety

N/A

Net Debt / Equity

0.13

N/A

Interest Coverage

N/A

2.03

Net Debt / EBITDA

0.78

2.35%

Dividend Yield

0.22%

ABBV: 5Ties: 1L: 2

ABBVL

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

$1.82

created per $1 retained over 3 years

Value Creator

Σ Retained

$4.35B

Δ Market Cap

+$7.93B

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

81.7% Margin of Safety

Price is 81.7% below estimated fair value

Current Price: $111.32

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $609.59

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 $111?

+3.7%

Market-Implied Owner Earnings Growth

Standard FCF implies -2.8%

The market implies +3.7% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -2.8%, 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.

97/100

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.

-2.53

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.

Insiders 20.1%Institutions 61.7%Retail & Other 18.2%

No. of Institutional Holders1,114

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)

Total value (12M): $1.05M

ROBUSTO DINO E

Director

$523,700

@ $104.74 · 2026-05-29

ROBUSTO DINO E

Director

$527,200

@ $105.44 · 2026-05-05

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

Sells (3M)

Sells (12M)

Total value (12M): $1.67M

SCHWARTZ MARK S

Officer and Treasurer

$346,500

@ $110.00 · 2026-02-17

BERMAN ANN E

Director

$211,728

@ $110.16 · 2026-02-10

ALPERT MARC A

General Counsel

$383,983

@ $109.87 · 2026-02-10

SCOTT RICHARD WALDO

Chief Investment Officer

$104,740

@ $104.74 · 2025-12-11

DIKER CHARLES M

Director

$155,635

@ $107.93 · 2025-12-01

HARRIS WALTER L

Director

$155,563

@ $107.88 · 2025-12-01

BERMAN ANN E

Director

$156,096

@ $108.10 · 2025-12-01

FRIBOURG PAUL J

Director

$155,923

@ $108.13 · 2025-12-01

DIKER CHARLES M

Director

$137,593

@ $96.76 · 2025-09-02

HARRIS WALTER L

Director

$137,396

@ $96.69 · 2025-09-02

BERMAN ANN E

Director

$137,465

@ $96.67 · 2025-09-02

FRIBOURG PAUL J

Director

$137,493

@ $96.69 · 2025-09-02

FRIBOURG PAUL J

Director

$113,068

@ $88.82 · 2025-06-03

DIKER CHARLES M

Director

$112,583

@ $88.37 · 2025-06-02

HARRIS WALTER L

Director

$113,157

@ $88.82 · 2025-06-02

BERMAN ANN E

Director

$113,068

@ $88.82 · 2025-06-02

SCOTT RICHARD WALDO

Chief Investment Officer

$792,950

@ $87.92 · 2025-05-08

DIKER CHARLES M

Director

$103,816

@ $86.73 · 2025-03-03

HARRIS WALTER L

Director

$103,983

@ $86.87 · 2025-03-03

WELTERS ANTHONY

Director

$103,983

@ $86.87 · 2025-03-03

BERMAN ANN E

Director

$104,019

@ $86.90 · 2025-03-03

FRIBOURG PAUL J

Director

$104,007

@ $86.89 · 2025-03-03

SCOTT RICHARD WALDO

Chief Investment Officer

$689,405

@ $84.60 · 2025-02-25

ALPERT MARC A

General Counsel

$382,680

@ $85.04 · 2025-02-11

TISCH JONATHAN M.

Retired

$639,494

@ $86.81 · 2025-02-07

TISCH ANDREW H

Divisional Officer

$1.37M

@ $84.67 · 2025-01-03

TISCH JONATHAN M.

Divisional Officer

$1.38M

@ $84.86 · 2025-01-02

DIKER CHARLES M

Director

$99,507

@ $86.83 · 2024-12-02

HARRIS WALTER L

Director

$99,278

@ $86.63 · 2024-12-02

FRIBOURG PAUL J

Director

$99,484

@ $86.81 · 2024-12-02

WELTERS ANTHONY

Director

$99,484

@ $86.81 · 2024-12-02

BERMAN ANN E

Director

$99,106

@ $86.48 · 2024-12-02

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.

😏Greed(64/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

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)

⚪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 (64)

View ABBV Full Analysis View L Full Analysis

Frequently Asked Questions: ABBV vs L

Is AbbVie Inc. or Loews Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, L trades at a 81.7% margin of safety (intrinsic value $610 vs. price $111), compared to ABBV's -71.5% margin of safety (intrinsic $172 vs. $295).

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

L scores 97/100 (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 Loews Corporation in financial distress?▼

L's Altman Z-Score of 0.7 places it in the Distress 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 stock has higher return on invested capital, AbbVie Inc. or Loews Corporation?▼

ABBV earns 29.1% ROIC versus L's 7.4%. 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 Loews Corporation's?▼

L's dividend earns a safety score of 85/100 (Very Safe), compared to ABBV's 39/100 (Unsafe). L has raised its dividend for 0 consecutive years.