Compare Stocks › ABBV vs TER

AbbVie Inc. (ABBV) vs Teradyne, Inc. (TER): 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%. TER is overvalued at $274, with an intrinsic value of $229 and a margin of safety of -20%. Of the two, TER has the wider margin of safety.

ABBV

AbbVie Inc.

$294.89

TER

Teradyne, Inc.

$274.37

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.

TER

★Teradyne, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★Teradyne, Inc. scores 72/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
★PEG ratio of 0.46 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings 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.

TER

⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
⚠FCF yield of 1.4% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠8 insider sales totaling $5.7M with no purchases in the past 3 months — insiders are reducing their exposure.

Key Valuation Metrics

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ABBV

TER

Valuation

N/A

Free Cash Flow

$600.95M

N/A

FCF Yield

1.40%

50.67

Trailing P/E

31.54

18.24

Forward P/E

22.88

Quality & Moat

29.08%

ROIC

31.48%

N/A

ROE

42.72%

73.72%

Gross Margin

59.32%

0.60

PEG Ratio

0.46

Balance Sheet Safety

N/A

Net Debt / Equity

Net cash

N/A

Interest Coverage

N/A

2.03

Net Debt / EBITDA

-0.19

2.35%

Dividend Yield

0.19%

ABBV: 3Ties: 1TER: 4

ABBVTER

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.

TER

$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

TER

$12.54

created per $1 retained over 3 years

Exceptional Value Creator

Σ Retained

$1.32B

Δ Market Cap

+$16.61B

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

TER

18.8% Overvalued

Price is 18.8% above estimated fair value

Current Price: $274.37

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $231.04

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.

TER

What growth rate is the market pricing in at $274?

+26.2%

Market-Implied Owner Earnings Growth

Standard FCF implies +25.0%

The market implies +26.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +25.0%, 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.

TER

72/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by roic consistency. Revenue Predictability is the area most vulnerable to competitive pressure.

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.

TER

-2.76

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.

TER

Insiders 0.2%Institutions 101.0%

No. of Institutional Holders1,953

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

TER

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

TER

Sells (3M)

Sells (12M)

Total value (12M): $15.76M

MATZ MARILYN

Director

$140,000

@ $350.00 · 2026-10-21

MATZ MARILYN

Director

$273,024

@ $341.28 · 2026-10-15

SMITH GREGORY STEPHEN

Chief Executive Officer

$1.37M

@ $341.28 · 2026-10-15

MATZ MARILYN

Director

$270,264

@ $337.83 · 2026-09-15

SMITH GREGORY STEPHEN

Chief Executive Officer

$1.35M

@ $337.83 · 2026-09-15

JOHNSON MERCEDES

Director

$56,997

@ $341.30 · 2026-09-01

MATZ MARILYN

Director

$510,000

@ $425.00 · 2026-08-17

SMITH GREGORY STEPHEN

Chief Executive Officer

$1.70M

@ $425.00 · 2026-08-17

JOHNSON MERCEDES

Director

$59,453

@ $358.15 · 2026-08-03

MATZ MARILYN

Director

$427,572

@ $356.31 · 2026-07-15

SMITH GREGORY STEPHEN

Chief Executive Officer

$1.43M

@ $356.31 · 2026-07-15

JOHNSON MERCEDES

Director

$76,820

@ $460.00 · 2026-07-01

MATZ MARILYN

Director

$507,636

@ $423.03 · 2026-06-15

SMITH GREGORY STEPHEN

Chief Executive Officer

$1.69M

@ $423.03 · 2026-06-15

JOHNSON MERCEDES

Director

$61,747

@ $369.74 · 2026-06-02

POULIN SHANNON JOHN

Officer

$581,013

@ $349.17 · 2026-05-22

MATZ MARILYN

Director

$140,000

@ $350.00 · 2026-05-21

MATZ MARILYN

Director

$271,184

@ $338.98 · 2026-05-15

SMITH GREGORY STEPHEN

Chief Executive Officer

$2.91M

@ $338.98 · 2026-05-15

DRISCOLL RYAN E

General Counsel

$256,768

@ $377.60 · 2026-05-07

MILLS REGAN

Officer

$5,475

@ $342.19 · 2026-04-08

JOHNSON MERCEDES

Director

$195,125

@ $312.20 · 2026-04-06

MILLS REGAN

Officer

$73,302

@ $290.88 · 2026-04-02

JOHNSON MERCEDES

Director

$187,000

@ $299.20 · 2026-03-05

MILLS REGAN

Officer

$262,302

@ $332.87 · 2026-02-25

JOHNSON MERCEDES

Director

$166,862

@ $266.98 · 2026-02-05

JOHNSON MERCEDES

Director

$132,406

@ $211.85 · 2026-01-05

SMITH GREGORY STEPHEN

Chief Executive Officer

$223,051

@ $201.31 · 2025-12-12

JOHNSON MERCEDES

Director

$125,000

@ $200.00 · 2025-12-05

SMITH GREGORY STEPHEN

Chief Executive Officer

$199,662

@ $180.20 · 2025-11-12

JOHNSON MERCEDES

Director

$110,656

@ $177.05 · 2025-11-05

SMITH GREGORY STEPHEN

Chief Executive Officer

$160,926

@ $145.24 · 2025-10-10

JOHNSON MERCEDES

Director

$92,438

@ $147.90 · 2025-10-06

SMITH GREGORY STEPHEN

Chief Executive Officer

$70,020

@ $126.39 · 2025-09-22

SMITH GREGORY STEPHEN

Chief Executive Officer

$63,710

@ $115.00 · 2025-09-12

JOHNSON MERCEDES

Director

$75,038

@ $120.06 · 2025-09-05

SMITH GREGORY STEPHEN

Chief Executive Officer

$58,724

@ $106.00 · 2025-08-12

JOHNSON MERCEDES

Director

$66,250

@ $106.00 · 2025-08-05

SMITH GREGORY STEPHEN

Chief Executive Officer

$58,574

@ $105.73 · 2025-07-30

JOHNSON MERCEDES

Director

$198,244

@ $105.73 · 2025-07-30

JOHNSON MERCEDES

Director

$69,350

@ $110.96 · 2025-03-03

DRISCOLL RYAN E

General Counsel

$24,082

@ $111.49 · 2025-02-04

MEHTA SANJAY

Chief Financial Officer

$154,302

@ $111.49 · 2025-02-04

BURNS RICHARD JOHN

Officer

$49,613

@ $111.49 · 2025-02-04

JOHNSON MERCEDES

Director

$70,362

@ $112.58 · 2025-02-03

MEHTA SANJAY

Chief Financial Officer

$62,628

@ $102.00 · 2025-01-30

DRISCOLL RYAN E

Officer

$44,574

@ $102.00 · 2025-01-30

MEHTA SANJAY

Chief Financial Officer

$656,040

@ $122.90 · 2025-01-29

DRISCOLL RYAN E

General Counsel

$9,340

@ $122.89 · 2025-01-29

BURNS RICHARD JOHN

Officer

$181,523

@ $122.90 · 2025-01-29

MEHTA SANJAY

Chief Financial Officer

$215,592

@ $120.51 · 2025-01-28

DRISCOLL RYAN E

General Counsel

$12,895

@ $120.51 · 2025-01-28

BURNS RICHARD JOHN

Officer

$49,048

@ $120.51 · 2025-01-28

BURNS RICHARD JOHN

Officer

$49,048

@ $120.51 · 2025-01-28

SMITH GREGORY STEPHEN

Chief Executive Officer

$400,400

@ $130.00 · 2025-01-03

JOHNSON MERCEDES

Director

$79,225

@ $126.76 · 2025-01-02

SMITH GREGORY STEPHEN

Chief Executive Officer

$400,400

@ $130.00 · 2024-12-16

JOHNSON MERCEDES

Director

$68,775

@ $110.04 · 2024-12-02

JOHNSON MERCEDES

Director

$69,638

@ $111.42 · 2024-11-07

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.

TER

😨Fear(24/100)

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

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)

TER

⚪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 (24)

View ABBV Full Analysis View TER Full Analysis

Frequently Asked Questions: ABBV vs TER

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

Based on our discounted cash flow model, TER trades at a -20.0% margin of safety (intrinsic value $229 vs. price $274), compared to ABBV's -71.5% margin of safety (intrinsic $172 vs. $295).

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

ABBV scores 82/100 (Wide moat), while TER scores 72/100 (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. TER scores 14.9 (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 Teradyne, Inc.?▼

TER earns 31.5% ROIC versus ABBV's 29.1%. 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 Teradyne, Inc.'s?▼

TER's dividend earns a safety score of 91/100 (Very Safe), compared to ABBV's 39/100 (Unsafe). TER has raised its dividend for 2 consecutive years.