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AbbVie Inc. (ABBV) vs Qnity Electronics, Inc. (Q): 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%. Q is undervalued at $117, with an intrinsic value of $153 and a margin of safety of 24%. Of the two, Q has the wider margin of safety.

ABBV
AbbVie Inc.
$294.89
VS
Q
Qnity Electronics, Inc.
$116.67

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.
Q

    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.
    Q

      Key Valuation Metrics

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      ABBV
      Q
      Valuation
      N/A
      Free Cash Flow
      $772.25M
      N/A
      FCF Yield
      3.16%
      50.67
      Trailing P/E
      41.67
      18.24
      Forward P/E
      21.22
      Quality & Moat
      29.08%
      ROIC
      7.61%
      N/A
      ROE
      6.72%
      73.72%
      Gross Margin
      46.22%
      0.60
      PEG Ratio
      1.19
      Balance Sheet Safety
      N/A
      Net Debt / Equity
      0.47
      N/A
      Interest Coverage
      N/A
      2.03
      Net Debt / EBITDA
      2.34
      2.35%
      Dividend Yield
      0.27%
      ABBV: 6Ties: 1Q: 1
      ABBVQ

      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.

      Q

      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
      Q
      Not enough historical data to compute the retained earnings test.

      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
      Q
      18.3% Margin of Safety
      Price is 18.3% below estimated fair value
      Current Price: $116.67
      Fair Value: $142.77
      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.

      Q

      What growth rate is the market pricing in at $117?

      +15.6%
      Market-Implied Owner Earnings Growth
      Standard FCF implies +15.8%

      The market implies +15.6% Owner Earnings growth, above historical trends.

      Standard FCF implies a demanding +15.8%, 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.
      Q
      47/100
      Narrow Moat
      70+ Wide · 40-69 Narrow · <40 None

      Narrow moat with margin stability as the key competitive advantage. Improving roic consistency 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

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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.
      Q
      -2.57
      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.
      Q
      Insiders 0.1%Institutions 78.9%Retail & Other 21.1%
      No. of Institutional Holders1,671
      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
      Q
      1
      Buys (3M)
      3
      Buys (12M)
      Total value (12M): $467,708
      DE BONDT KARIN
      Director
      $138,136
      @ $138.14 · 2026-08-11
      NOONAN ANNE P
      Director
      $250,452
      @ $77.30 · 2025-11-21
      GREEN BYRON
      Director
      $79,120
      @ $79.12 · 2025-11-19
      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
      Q
      0
      Sells (3M)
      6
      Sells (12M)
      Total value (12M): $970,297
      STERIN STEVEN M
      Director
      $59,340
      @ $148.35 · 2026-06-05
      STERIN STEVEN M
      Director
      $82,764
      @ $161.96 · 2026-05-26
      GOSS MICHAEL G.
      Officer
      $160,677
      @ $84.79 · 2025-12-11
      KEMP JON D
      Chief Executive Officer
      $480,732
      @ $85.01 · 2025-12-11
      NOONAN ANNE P
      Director
      $534.00
      @ $76.29 · 2025-11-21
      KANG SANG HO
      Officer
      $186,250
      @ $74.50 · 2025-11-21
      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.
      Q
      FearGreed
      😨Fear(39/100)

      "Market is pessimistic — investigate whether fears are temporary or structural"

      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)
      Q
      ⚪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: Fear (39)
      View ABBV Full AnalysisView Q Full Analysis

      Frequently Asked Questions: ABBV vs Q

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

      Based on our discounted cash flow model, Q trades at a 23.9% margin of safety (intrinsic value $153 vs. price $117), compared to ABBV's -71.5% margin of safety (intrinsic $172 vs. $295).

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

      ABBV scores 82/100 (Wide moat), while Q scores 47/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

      Is Qnity Electronics, Inc. in financial distress?▼

      Q's Altman Z-Score of 2.2 places it in the Grey 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 Qnity Electronics, Inc.?▼

      ABBV earns 29.1% ROIC versus Q's 7.6%. 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 Qnity Electronics, Inc.'s?▼

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

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