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Compare Stocks › ABBV vs ZBH

AbbVie Inc. (ABBV) vs Zimmer Biomet Holdings, Inc. (ZBH)

ABBV
AbbVie Inc.
$206.94
VS
ZBH
Zimmer Biomet Holdings, Inc.
$83.24

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 83/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
ZBH
  • ★Gross margin of 70.2% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Each dollar of retained earnings has created $2.57 of earning power — management is an exceptional capital allocator.
  • ★Dividend yield of 1.16% with a consistent or growing payout over the past 4 years.

Risks

ABBV
  • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
  • ⚠Trailing P/E of 100.9x is 61% above the historical average of 62.5x — the stock trades at a premium to its own history.
  • ⚠Insiders have sold $10.7M worth of stock in the past 3 months — significant insider liquidation.
ZBH

    Key Valuation Metrics

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    ABBV
    ZBH
    Valuation
    N/A
    Free Cash Flow
    $1.42B
    N/A
    FCF Yield
    8.81%
    100.94
    Trailing P/E
    21.56
    12.79
    Forward P/E
    9.26
    Quality & Moat
    22.90%
    ROIC
    6.45%
    N/A
    ROE
    5.56%
    72.03%
    Gross Margin
    70.18%
    0.57
    PEG Ratio
    0.63
    Balance Sheet Safety
    N/A
    Debt / Equity
    0.60
    N/A
    Interest Coverage
    N/A
    2.10
    Net Debt / EBITDA
    2.75
    3.35%
    Dividend Yield
    1.16%
    ABBV: 4Ties: 2ZBH: 2
    ABBVZBH

    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.

    ZBH

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

    $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
    ZBH
    $-4.43
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $2.05B
    Δ Market Cap
    $-9.07B
    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
    482.8% Overvalued
    Price is 482.8% above estimated fair value
    Current Price: $206.94
    Fair Value: $35.50
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    ZBH
    140.9% Overvalued
    Price is 140.9% above estimated fair value
    Current Price: $83.24
    Fair Value: $34.55
    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.

    ZBH

    What growth rate is the market pricing in at $83?

    +14.5%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +5.0%

    The market implies +14.5% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding +5.0%, reflecting heavy growth investment expected to generate future returns.

    Economic Moat Score

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    ABBV
    83/100
    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.
    ZBH
    68/100
    Narrow Moat
    70+ Wide · 40-69 Narrow · <40 None

    Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency 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.
    ZBH
    -2.58
    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 76.5%Retail & Other 23.4%
    No. of Institutional Holders5,052
    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.
    ZBH
    Insiders 0.2%Institutions 104.8%
    No. of Institutional Holders1,305
    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
    ZBH
    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
    3
    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
    ZBH
    2
    Sells (3M)
    7
    Sells (12M)
    Total value (12M): $950,612
    WINKLER LORI
    Officer
    $250,849
    @ $94.66 · 2026-03-12
    YI SANG
    Officer
    $96,490
    @ $96.49 · 2026-02-12
    YI SANG
    Officer
    $124,302
    @ $103.58 · 2025-09-11
    WINKLER LORI
    Officer
    $156,225
    @ $104.15 · 2025-09-08
    WINKLER LORI
    Officer
    $153,735
    @ $102.49 · 2025-08-18
    YI SANG
    Officer
    $74,011
    @ $92.51 · 2025-06-13
    YI SANG
    Officer
    $95,000
    @ $95.00 · 2025-06-11
    WINKLER LORI
    Officer
    $150,649
    @ $104.40 · 2025-03-05
    YI SANG
    Officer
    $1.47M
    @ $114.69 · 2024-05-31
    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(51/100)

    "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.
    ZBH
    FearGreed
    😨Fear(25/100)

    "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 (51)
    ZBH
    ⚪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 (25)
    View ABBV Full AnalysisView ZBH Full Analysis