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Compare Stocks › ABBV vs RL

AbbVie Inc. (ABBV) vs Ralph Lauren Corporation (RL): 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%. RL is fairly valued at $380, with an intrinsic value of $387 and a margin of safety of 2%. Of the two, RL has the wider margin of safety.

ABBV
AbbVie Inc.
$250.94
VS
RL
Ralph Lauren Corporation
$380.34

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.
RL
  • ★Ralph Lauren Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Gross margin of 69.9% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Ralph Lauren Corporation scores 90/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

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.
RL
  • ⚠FCF yield of 2.9% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠PEG ratio of 2.19 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Insiders have sold $2.3M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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ABBV
RL
Valuation
N/A
Free Cash Flow
$656.19M
N/A
FCF Yield
2.90%
70.89
Trailing P/E
25.19
15.41
Forward P/E
18.62
Quality & Moat
27.60%
ROIC
14.65%
N/A
ROE
34.66%
72.79%
Gross Margin
69.86%
0.41
PEG Ratio
2.19
Balance Sheet Safety
N/A
Net Debt / Equity
0.33
N/A
Interest Coverage
N/A
2.06
Net Debt / EBITDA
0.62
2.76%
Dividend Yield
0.98%
ABBV: 4Ties: 2RL: 2
ABBVRL

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.

RL

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
RL
$7.78
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$1.72B
Δ Market Cap
+$13.37B
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
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
RL
1.7% Margin of Safety
Price is 1.7% below estimated fair value
Current Price: $380.34
Fair Value: $387.00
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.

RL

What growth rate is the market pricing in at $380?

+10.8%
Market-Implied Owner Earnings Growth
Standard FCF implies +15.7%

The market implies +10.8% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +15.7%, 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.
RL
90/100
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.
RL
-2.55
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.
RL
Insiders 2.5%Institutions 107.8%
No. of Institutional Holders1,130
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
RL
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
0
Sells (3M)
0
Sells (12M)
No open market insider sales found.
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
RL
1
Sells (3M)
7
Sells (12M)
Total value (12M): $25.64M
RANFTL ROBERT P
Chief Operating Officer
$2.34M
@ $359.56 · 2026-06-03
ALAGOZ HALIDE
Officer
$405,440
@ $362.00 · 2026-03-04
LOUVET PATRICE
Chief Executive Officer
$16.65M
@ $354.22 · 2026-02-10
ALAGOZ HALIDE
Officer
$688,812
@ $366.00 · 2025-12-02
ALAGOZ HALIDE
Officer
$740,829
@ $317.00 · 2025-09-04
ALAGOZ HALIDE
Officer
$1.56M
@ $295.00 · 2025-08-27
RANFTL ROBERT P
Chief Operating Officer
$3.26M
@ $282.03 · 2025-08-19
LOUVET PATRICE
Chief Executive Officer
$1.81M
@ $240.00 · 2025-05-05
LOUVET PATRICE
Chief Executive Officer
$3.44M
@ $232.50 · 2025-03-24
ALAGOZ HALIDE
Officer
$1.92M
@ $285.00 · 2025-02-18
LOUVET PATRICE
Chief Executive Officer
$5.45M
@ $227.16 · 2024-12-11
LAUREN DAVID R
Officer and Director
$8.32M
@ $221.14 · 2024-11-08
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.
RL
FearGreed
😐Neutral(54/100)

"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)
RL
⚪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 (54)
View ABBV Full AnalysisView RL Full Analysis

Frequently Asked Questions: ABBV vs RL

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

Based on our discounted cash flow model, RL trades at a 1.7% margin of safety (intrinsic value $387 vs. price $380), compared to ABBV's -40.7% margin of safety (intrinsic $178 vs. $251).

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

RL scores 90/100 (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 AbbVie Inc. in financial distress?▼

ABBV's Altman Z-Score of 2.4 places it in the Grey zone, signaling elevated bankruptcy risk. RL scores 6.2 (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 Ralph Lauren Corporation?▼

ABBV earns 27.6% ROIC versus RL's 14.7%. 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 Ralph Lauren Corporation's?▼

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

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