Compare Stocks › ABBV vs TEL

AbbVie Inc. (ABBV) vs TE Connectivity plc (TEL): 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%. TEL is overvalued at $213, with an intrinsic value of $156 and a margin of safety of -37%. Of the two, TEL has the wider margin of safety.

ABBV

AbbVie Inc.

$294.89

TEL

TE Connectivity plc

$213.03

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.

TEL

★TE Connectivity plc has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
★TE Connectivity plc scores 81/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
★Free cash flow has grown at a 23.5% 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.

TEL

⚠FCF yield of 5.2% suggests reasonable valuation assuming continued moderate growth.
⚠12 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.

Key Valuation Metrics

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ABBV

TEL

Valuation

N/A

Free Cash Flow

$3.20B

N/A

FCF Yield

5.23%

50.67

Trailing P/E

19.24

18.24

Forward P/E

14.09

Quality & Moat

29.08%

ROIC

17.09%

N/A

ROE

24.61%

73.72%

Gross Margin

36.24%

0.60

PEG Ratio

1.23

Balance Sheet Safety

N/A

Net Debt / Equity

0.29

N/A

Interest Coverage

N/A

2.03

Net Debt / EBITDA

0.76

2.35%

Dividend Yield

1.46%

ABBV: 4Ties: 1TEL: 3

ABBVTEL

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.

TEL

$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

TEL

$6.55

created per $1 retained over 3 years

Exceptional Value Creator

Σ Retained

$4.66B

Δ Market Cap

+$30.50B

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

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $172.00

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

TEL

36.5% Overvalued

Price is 36.5% above estimated fair value

Current Price: $213.03

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $156.05

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.

TEL

What growth rate is the market pricing in at $213?

+15.5%

Market-Implied Owner Earnings Growth

Standard FCF implies +8.0%

The market implies +15.5% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +8.0%, 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.

TEL

81/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Reinvestment Efficiency is the standout factor.

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.

TEL

-2.87

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

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.

TEL

Insiders 0.1%Institutions 99.3%Retail & Other 0.5%

No. of Institutional Holders1,858

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

Buys (3M)

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

TEL

Buys (3M)

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

Sells (3M)

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

TEL

Sells (3M)

Sells (12M)

Total value (12M): $52.50M

KROEGER SHADRAK W

Officer

$2.02M

@ $215.00 · 2026-06-01

KROEGER SHADRAK W

Officer

$2.02M

@ $215.00 · 2026-05-06

KROEGER SHADRAK W

Officer

$2.10M

@ $223.26 · 2026-04-08

KROEGER SHADRAK W

Officer

$2.09M

@ $222.52 · 2026-03-02

KROEGER SHADRAK W

Officer

$1.53M

@ $233.64 · 2026-02-13

KROEGER SHADRAK W

Officer

$2.20M

@ $233.82 · 2026-02-13

SHAFFER REUBEN M

Officer

$333,853

@ $234.28 · 2026-02-13

JENKINS JOHN S.

General Counsel

$1.37M

@ $222.81 · 2026-02-09

CURTIN TERRENCE R

Chief Executive Officer

$9.45M

@ $227.07 · 2025-12-19

MITTS HEATH A

Chief Financial Officer

$2.84M

@ $226.43 · 2025-12-19

JENKINS JOHN S.

General Counsel

$6.20M

@ $247.73 · 2025-11-03

MITTS HEATH A

Chief Financial Officer

$20.34M

@ $247.15 · 2025-11-03

KROEGER SHADRAK W

Officer

$4.84M

@ $202.99 · 2025-09-02

SAGAR MALAVIKA

Officer

$403,004

@ $207.20 · 2025-07-28

JENKINS JOHN S.

General Counsel

$9.60M

@ $209.33 · 2025-07-28

CURTIN TERRENCE R

Chief Executive Officer

$41.15M

@ $208.76 · 2025-07-28

STUCKI AARON KYLE

Officer

$10.20M

@ $192.78 · 2025-07-23

STUCKI AARON KYLE

Officer

$2.23M

@ $170.00 · 2025-06-26

KROEGER SHADRAK W

Officer

$3.98M

@ $159.03 · 2025-06-02

JENKINS JOHN S.

General Counsel

$3.32M

@ $162.85 · 2025-05-13

STUCKI AARON KYLE

President

$800,000

@ $160.00 · 2025-05-12

SAGAR MALAVIKA

Officer

$500,000

@ $160.00 · 2025-05-12

MITTS HEATH A

Chief Financial Officer

$8.49M

@ $159.21 · 2025-05-12

MITTS HEATH A

Chief Financial Officer

$5.80M

@ $153.33 · 2025-05-09

JENKINS JOHN S.

General Counsel

$4.48M

@ $149.39 · 2025-05-02

KROEGER SHADRAK W

Officer

$3.67M

@ $146.77 · 2025-03-04

WRIGHT LAURA H

Director

$154,660

@ $154.66 · 2025-02-18

KROEGER SHADRAK W

Officer

$587,706

@ $151.16 · 2025-01-27

CURTIN TERRENCE R

Chief Executive Officer

$17.79M

@ $154.69 · 2024-11-11

JENKINS JOHN S.

General Counsel

$6.34M

@ $155.49 · 2024-11-07

OTT ROBERT J

Officer

$2.50M

@ $155.41 · 2024-11-06

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

😏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.

TEL

😐Neutral(48/100)

"Market is pricing this stock without strong emotion in either direction"

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)

TEL

⚪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 (48)

View ABBV Full Analysis View TEL Full Analysis

Frequently Asked Questions: ABBV vs TEL

Is AbbVie Inc. or TE Connectivity plc more undervalued in 2026?▼

Based on our discounted cash flow model, TEL trades at a -36.5% margin of safety (intrinsic value $156 vs. price $213), compared to ABBV's -71.5% margin of safety (intrinsic $172 vs. $295).

Which stock has a wider economic moat, AbbVie Inc. or TE Connectivity plc?▼

ABBV scores 82/100 (Wide moat), while TEL scores 81/100 (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. TEL scores 5.3 (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 TE Connectivity plc?▼

ABBV earns 29.1% ROIC versus TEL's 17.1%. 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 TE Connectivity plc's?▼

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