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

AbbVie Inc. (ABBV) vs Realty Income Corporation (O): 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%. O is overvalued at $64, with an intrinsic value of $0 and a margin of safety of -100%. Of the two, ABBV has the wider margin of safety.

ABBV
AbbVie Inc.
$250.94
VS
O
Realty Income Corporation
$63.87

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.
O
  • ★Gross margin of 92.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Free cash flow has grown at a 15.9% 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.
  • ⚠Free cash flow has declined at a 9.8% CAGR over the past 4 years — a concerning trend.
O
  • ⚠Return on equity has remained below 5% over 4 years — shareholder capital is generating minimal returns.
  • ⚠PEG ratio of 3.03 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Net debt/EBITDA of 5.7x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.

Key Valuation Metrics

Learn more →
ABBV
O
Valuation
N/A
Free Cash Flow
$3.99B
N/A
FCF Yield
0.00%
70.89
Trailing P/E
52.35
15.41
Forward P/E
37.41
Quality & Moat
27.60%
ROIC
2.98%
N/A
ROE
2.83%
72.79%
Gross Margin
92.60%
0.41
PEG Ratio
3.03
Balance Sheet Safety
N/A
Net Debt / Equity
0.73
N/A
Interest Coverage
N/A
2.06
Net Debt / EBITDA
5.72
2.76%
Dividend Yield
5.09%
ABBV: 4Ties: 1O: 3
ABBVO

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.

O

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
O
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-4.94B
Δ Market Cap
$-7.06
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
40.7% Overvalued
Price is 40.7% above estimated fair value
Current Price: $250.94
Fair Value: $178.31
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
O
Insufficient Data
Enter initial FCF to calculate intrinsic value
Current Price: $63.87
Fair Value: $0.00
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

Learn more →
ABBV

Requires positive FCF to compute implied growth rate.

O

What growth rate is the market pricing in at $64?

+12.4%
Market-Implied Owner Earnings Growth
Standard FCF implies -6.0%

The market implies +12.4% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding -6.0%, reflecting heavy 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.
O
55/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.

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.
O
-2.52
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 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.
O
Insiders 0.1%Institutions 80.1%Retail & Other 19.8%
No. of Institutional Holders1,902
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
O
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

Learn more →
ABBV
0
Sells (3M)
0
Sells (12M)
No open market insider sales found.
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
O
0
Sells (3M)
2
Sells (12M)
Total value (12M): $1.13M
BUSHORE MICHELLE
General Counsel
$461,908
@ $62.42 · 2026-04-02
PREUSSE MARY HOGAN
Director
$664,730
@ $60.43 · 2025-09-30
PREUSSE MARY HOGAN
Director
$107,128
@ $62.57 · 2024-09-11
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(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.
O
FearGreed
😐Neutral(57/100)

"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 (61)
O
⚪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 (57)
View ABBV Full AnalysisView O Full Analysis

Frequently Asked Questions: ABBV vs O

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

Based on our discounted cash flow model, ABBV trades at a -40.7% margin of safety (intrinsic value $178 vs. price $251), compared to O's -100.0% margin of safety (intrinsic $0 vs. $64).

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

ABBV scores 82/100 (Wide moat), while O scores 55/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Realty Income Corporation in financial distress?▼

O's Altman Z-Score of 0.0 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 Realty Income Corporation?▼

ABBV earns 27.6% ROIC versus O's 3.0%. 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 Realty Income Corporation's?▼

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