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AbbVie Inc. (ABBV) vs Qnity Electronics, Inc. (Q): 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%. Q is fairly valued at $131, with an intrinsic value of $133 and a margin of safety of 1%. Of the two, Q has the wider margin of safety.

ABBV
AbbVie Inc.
$250.94
VS
Q
Qnity Electronics, Inc.
$131.18

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.
Q

    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.
    Q
    • ⚠PEG ratio of 2.17 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.

    Key Valuation Metrics

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    ABBV
    Q
    Valuation
    N/A
    Free Cash Flow
    $988.00M
    N/A
    FCF Yield
    3.60%
    70.89
    Trailing P/E
    42.18
    15.41
    Forward P/E
    26.76
    Quality & Moat
    27.60%
    ROIC
    7.44%
    N/A
    ROE
    7.48%
    72.79%
    Gross Margin
    46.09%
    0.41
    PEG Ratio
    2.17
    Balance Sheet Safety
    N/A
    Net Debt / Equity
    0.49
    N/A
    Interest Coverage
    N/A
    2.06
    Net Debt / EBITDA
    2.54
    2.76%
    Dividend Yield
    0.24%
    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
    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
    Q
    6.2% Overvalued
    Price is 6.2% above estimated fair value
    Current Price: $131.18
    Fair Value: $123.53
    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 $131?

    +17.1%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +13.9%

    The market implies +17.1% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +13.9%, 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 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.
    Q
    Insiders 0.1%Institutions 76.8%Retail & Other 23.1%
    No. of Institutional Holders1,559
    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
    0
    Buys (3M)
    2
    Buys (12M)
    Total value (12M): $329,572
    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
    0
    Sells (3M)
    0
    Sells (12M)
    No open market insider sales found.
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    Q
    2
    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(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.
    Q
    FearGreed
    😐Neutral(42/100)

    "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 (61)
    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: Neutral (42)
    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 1.3% margin of safety (intrinsic value $133 vs. price $131), compared to ABBV's -40.7% margin of safety (intrinsic $178 vs. $251).

    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 27.6% ROIC versus Q'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 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.