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AbbVie Inc. (ABBV) vs Willis Towers Watson Public Limited Company (WTW): 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%. WTW is undervalued at $255, with an intrinsic value of $526 and a margin of safety of 51%. Of the two, WTW has the wider margin of safety.

ABBV
AbbVie Inc.
$216.49
VS
WTW
Willis Towers Watson Public Limited Company
$255.20

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.
WTW
  • ★Willis Towers Watson Public Limited Company has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Willis Towers Watson Public Limited Company scores 89/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
  • ★Free cash flow has grown at a 36.5% 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.
  • ⚠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.
WTW
  • ⚠Altman Z-Score of 1.56 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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ABBV
WTW
Valuation
$20.81B
Free Cash Flow
$2.05B
5.44%
FCF Yield
8.51%
105.60
Trailing P/E
14.99
13.32
Forward P/E
11.50
Quality & Moat
21.89%
ROIC
10.72%
N/A
ROE
20.61%
72.03%
Gross Margin
42.41%
0.61
PEG Ratio
1.27
Balance Sheet Safety
N/A
Net Debt / Equity
0.63
N/A
Interest Coverage
N/A
2.12
Net Debt / EBITDA
1.83
3.11%
Dividend Yield
1.08%
ABBV: 5Ties: 1WTW: 4
ABBVWTW

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.

WTW

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
WTW
$3.43
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$1.50B
Δ Market Cap
+$5.13B
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
WTW
51.4% Margin of Safety
Price is 51.4% below estimated fair value
Current Price: $255.20
Fair Value: $525.60
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.

WTW

What growth rate is the market pricing in at $255?

+4.9%
Market-Implied Owner Earnings Growth
Standard FCF implies +3.0%

The market implies +4.9% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +3.0%, 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.
WTW
89/100
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.
WTW
-2.49
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
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.
WTW
Insiders 0.3%Institutions 100.6%
No. of Institutional Holders1,087
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
WTW
2
Buys (3M)
4
Buys (12M)
Total value (12M): $2.07M
CLARKE LUCY
Officer
$499,340
@ $263.36 · 2026-05-06
HESS CARL AARON
Chief Executive Officer
$510,160
@ $255.08 · 2026-05-04
CLARKE LUCY
Officer
$996,929
@ $284.84 · 2026-02-13
HAMMOND MICHAEL P
Director
$67,205
@ $278.86 · 2026-02-12
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
WTW
0
Sells (3M)
1
Sells (12M)
Total value (12M): $912,009
FURMAN MATTHEW
General Counsel
$912,009
@ $304.00 · 2026-03-03
HESS CARL AARON
Chief Executive Officer
$3.09M
@ $309.13 · 2025-05-08
FABER ALEXIS
Chief Operating Officer
$81,334
@ $306.92 · 2025-05-08
GEBAUER JULIE JARECKE
Officer
$547,405
@ $338.74 · 2025-03-03
GEBAUER JULIE JARECKE
Officer
$1.14M
@ $335.77 · 2025-02-28
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.
WTW
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: Neutral (56)
WTW
⚪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 WTW Full Analysis

Frequently Asked Questions: ABBV vs WTW

Is AbbVie Inc. or Willis Towers Watson Public Limited Company more undervalued in 2026?▼

Based on our discounted cash flow model, WTW trades at a 51.4% margin of safety (intrinsic value $526 vs. price $255), compared to ABBV's -35.3% margin of safety (intrinsic $160 vs. $216).

Which stock has a wider economic moat, AbbVie Inc. or Willis Towers Watson Public Limited Company?▼

WTW scores 89/100 (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 Willis Towers Watson Public Limited Company in financial distress?▼

WTW's Altman Z-Score of 1.6 places it in the Distress 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 company has better free cash flow, AbbVie Inc. or Willis Towers Watson Public Limited Company?▼

Willis Towers Watson Public Limited Company (WTW) generates a 8.5% 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 Willis Towers Watson Public Limited Company?▼

ABBV earns 21.9% ROIC versus WTW's 10.7%. 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 Willis Towers Watson Public Limited Company's?▼

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

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