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Compare Stocks › ABBV vs SWKS

AbbVie Inc. (ABBV) vs Skyworks Solutions, Inc. (SWKS): Which Is the Better Buy in 2026?

As of 2026-06-19, ABBV is overvalued at $216, with a DCF intrinsic value of $160 and a margin of safety of -35%. SWKS is undervalued at $72, with an intrinsic value of $120 and a margin of safety of 39%. Of the two, SWKS has the wider margin of safety.

ABBV
AbbVie Inc.
$216.49
VS
SWKS
Skyworks Solutions, Inc.
$72.45

Rewards

ABBV
  • ★AbbVie Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Gross margin of 72.0% 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.
SWKS
  • ★FCF yield of 9.9% is historically attractive — the business generates significant cash relative to its price.
  • ★Altman Z-Score of 4.62 indicates very low bankruptcy risk — the company is firmly in the safe zone.
  • ★Net debt/EBITDA of -0.3x means the company holds more cash than debt — a net cash position.

Risks

ABBV
  • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
  • ⚠FCF yield of 5.4% suggests reasonable valuation assuming continued moderate growth.
  • ⚠Trailing P/E of 105.6x is 69% above the historical average of 62.3x — the stock trades at a premium to its own history.
SWKS
  • ⚠ROIC has declined by 10.2 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠Trailing P/E of 30.2x is 63% above the historical average of 18.5x — the stock trades at a premium to its own history.

Key Valuation Metrics

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ABBV
SWKS
Valuation
$20.81B
Free Cash Flow
$1.08B
5.44%
FCF Yield
9.87%
105.60
Trailing P/E
30.19
13.32
Forward P/E
14.08
Quality & Moat
21.89%
ROIC
3.54%
N/A
ROE
6.17%
72.03%
Gross Margin
41.08%
0.61
PEG Ratio
1.54
Balance Sheet Safety
N/A
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
2.12
Net Debt / EBITDA
-0.26
3.11%
Dividend Yield
3.98%
ABBV: 5Ties: 1SWKS: 4
ABBVSWKS

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.

SWKS

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
SWKS
$-6.64
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$779.0M
Δ Market Cap
$-5.17B
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
35.3% Overvalued
Price is 35.3% above estimated fair value
Current Price: $216.49
Fair Value: $160.05
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
SWKS
6.4% Margin of Safety
Price is 6.4% below estimated fair value
Current Price: $72.45
Fair Value: $77.42
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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ABBV

What growth rate is the market pricing in at $216?

+17.1%
Market-Implied Owner Earnings Growth
Standard FCF implies +8.7%

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

Standard FCF implies a demanding +8.7%, reflecting heavy growth investment.

SWKS

What growth rate is the market pricing in at $72?

+3.7%
Market-Implied Owner Earnings Growth
Standard FCF implies -2.0%

The market implies +3.7% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding -2.0%, 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.
SWKS
48/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with reinvestment efficiency as the key competitive advantage. Improving margin stability 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.
SWKS
-2.85
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 Holders5,106
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.
SWKS
Insiders 0.4%Institutions 114.6%
No. of Institutional Holders964
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
SWKS
0
Buys (3M)
0
Buys (12M)
BRACE PHILIP GORDON
Chief Executive Officer
$661,300
@ $66.13 · 2025-02-25
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)
5
Sells (12M)
Total value (12M): $21.79M
PURDUE DAVID R.
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
SIATIS PERRY C.
General Counsel
$5.82M
@ $208.69 · 2025-03-03
RICHMOND TIMOTHY J
Officer
$4.47M
@ $210.45 · 2025-03-03
BUCKBEE KEVIN K
Officer
$3.85M
@ $203.41 · 2025-02-26
RICHMOND TIMOTHY J
Officer
$6.07M
@ $202.90 · 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
GONZALEZ RICHARD A
Officer and Director
$12.40M
@ $186.52 · 2024-08-05
GONZALEZ RICHARD A
Officer and Director
$49.50M
@ $175.00 · 2024-07-17
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
SWKS
0
Sells (3M)
2
Sells (12M)
Total value (12M): $764,501
KASNAVI REZA
Chief Technology Officer
$456,519
@ $62.26 · 2025-11-19
TERRY ROBERT JOHN
General Counsel
$307,982
@ $62.28 · 2025-11-19
TERRY ROBERT JOHN
General Counsel
$1.09M
@ $87.83 · 2024-11-12
KASNAVI REZA
Officer
$269,080
@ $87.96 · 2024-11-11
KASNAVI REZA
Officer
$1.07M
@ $89.84 · 2024-11-08
TERRY ROBERT JOHN
General Counsel
$164,181
@ $90.16 · 2024-11-08
BORI CARLOS S
Officer
$993,616
@ $97.63 · 2024-10-14
BORI CARLOS S
Officer
$950,462
@ $101.97 · 2024-09-13
KASNAVI REZA
Officer
$198,067
@ $107.47 · 2024-08-16
CARTER PHILIP MATTHEW
Officer
$54,240
@ $120.00 · 2024-07-16
CARTER PHILIP MATTHEW
Officer
$49,720
@ $110.00 · 2024-07-10
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
😐Neutral(56/100)

"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.
SWKS
FearGreed
😨Fear(36/100)

"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: Neutral (56)
SWKS
⚪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 (36)
View ABBV Full AnalysisView SWKS Full Analysis

Frequently Asked Questions: ABBV vs SWKS

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

Based on our discounted cash flow model, SWKS trades at a 39.4% margin of safety (intrinsic value $120 vs. price $72), compared to ABBV's -35.3% margin of safety (intrinsic $160 vs. $216).

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

ABBV scores 82/100 (Wide moat), while SWKS scores 48/100 (Narrow 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. SWKS scores 4.6 (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 company has better free cash flow, AbbVie Inc. or Skyworks Solutions, Inc.?▼

Skyworks Solutions, Inc. (SWKS) generates a 9.9% free cash flow yield, compared to AbbVie Inc.'s 5.4%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, AbbVie Inc. or Skyworks Solutions, Inc.?▼

ABBV earns 21.9% ROIC versus SWKS's 3.5%. 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 Skyworks Solutions, Inc.'s?▼

SWKS's dividend earns a safety score of 64/100 (Safe), compared to ABBV's 39/100 (Unsafe). SWKS has raised its dividend for 3 consecutive years.