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AbbVie Inc. (ABBV) vs PulteGroup, Inc. (PHM): 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%. PHM is undervalued at $125, with an intrinsic value of $210 and a margin of safety of 41%. Of the two, PHM has the wider margin of safety.

ABBV
AbbVie Inc.
$294.89
VS
PHM
PulteGroup, Inc.
$124.74

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.
PHM
  • ★PulteGroup, Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★PulteGroup, Inc. scores 78/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
  • ★Free cash flow has grown at a 46.5% 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.
  • ⚠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.
PHM
  • ⚠FCF yield of 7.4% suggests reasonable valuation assuming continued moderate growth.
  • ⚠Trailing P/E of 13.3x is 74% above the historical average of 7.7x — the stock trades at a premium to its own history.
  • ⚠8 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.

Key Valuation Metrics

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ABBV
PHM
Valuation
N/A
Free Cash Flow
$1.75B
N/A
FCF Yield
7.36%
50.67
Trailing P/E
13.33
18.24
Forward P/E
13.08
Quality & Moat
29.08%
ROIC
12.98%
N/A
ROE
13.86%
73.72%
Gross Margin
25.32%
0.60
PEG Ratio
1.34
Balance Sheet Safety
N/A
Net Debt / Equity
0.08
N/A
Interest Coverage
N/A
2.03
Net Debt / EBITDA
0.40
2.35%
Dividend Yield
0.83%
ABBV: 4Ties: 1PHM: 3
ABBVPHM

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.

PHM

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

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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
PHM
$1.66
created per $1 retained over 3 years
Value Creator
Σ Retained
$7.42B
Δ Market Cap
+$12.32B
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

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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
PHM
29.9% Margin of Safety
Price is 29.9% below estimated fair value
Current Price: $124.74
Fair Value: $177.90
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.

PHM

What growth rate is the market pricing in at $125?

-0.3%
Market-Implied Owner Earnings Growth
Standard FCF implies +3.0%

The market implies -0.3% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +3.0%, reflecting ongoing 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.
PHM
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

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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.
PHM
-2.48
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

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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.
PHM
Insiders 0.7%Institutions 99.7%
No. of Institutional Holders1,439
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

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ABBV
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
PHM
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

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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
PHM
0
Sells (3M)
8
Sells (12M)
Total value (12M): $26.41M
KOART MATTHEW WILLIAM
Chief Operating Officer
$894,840
@ $120.00 · 2026-05-27
SNYDER LILA
Director
$391,264
@ $117.18 · 2026-05-08
HENRY KEVIN A
Officer
$729,574
@ $141.03 · 2026-02-24
SHELDON TODD N
General Counsel
$1.92M
@ $135.01 · 2026-02-06
O'MEARA BRIEN P.
Officer
$542,040
@ $135.51 · 2026-02-06
KOART MATTHEW WILLIAM
Chief Operating Officer
$2.08M
@ $135.79 · 2026-02-06
FOLLIARD THOMAS J
Director
$4.96M
@ $134.04 · 2026-02-05
MARSHALL RYAN R
Chief Executive Officer
$14.89M
@ $133.86 · 2026-02-05
O'MEARA BRIEN P.
Officer
$104,170
@ $127.97 · 2025-08-14
O SHAUGHNESSY ROBERT T
Officer
$2.81M
@ $128.03 · 2025-08-14
SHELDON TODD N
General Counsel
$1.62M
@ $106.50 · 2025-02-13
O'MEARA BRIEN P.
Officer
$372,386
@ $106.40 · 2025-02-13
ANDERSON BRIAN P
Director
$266,122
@ $106.45 · 2025-02-10
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
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.
PHM
FearGreed
😐Neutral(55/100)

"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

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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)
PHM
⚪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 (55)
View ABBV Full AnalysisView PHM Full Analysis

Frequently Asked Questions: ABBV vs PHM

Is AbbVie Inc. or PulteGroup, Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, PHM trades at a 40.7% margin of safety (intrinsic value $210 vs. price $125), compared to ABBV's -71.5% margin of safety (intrinsic $172 vs. $295).

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

ABBV scores 82/100 (Wide moat), while PHM 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. PHM scores 6.0 (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 PulteGroup, Inc.?▼

ABBV earns 29.1% ROIC versus PHM's 13.0%. 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 PulteGroup, Inc.'s?▼

PHM's dividend earns a safety score of 94/100 (Very Safe), compared to ABBV's 39/100 (Unsafe). PHM has raised its dividend for 3 consecutive years.

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