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ABBV vs LH

ABBV
AbbVie Inc.
NEUTRAL
Price
$219.26
Market Cap
$387.52B
Sector
Healthcare
AI Confidence
68%
LH
Labcorp Holdings Inc.
NEUTRAL
Price
$259.57
Market Cap
$21.39B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
ABBV
163.63
LH
24.82
Forward P/E
ABBV
15.42
LH
13.46
P/B Ratio
ABBV
-146.66
LH
2.48
P/S Ratio
ABBV
6.5
LH
1.53
EV/EBITDA
ABBV
15.27
LH
12.5

Profitability

Gross Margin
ABBV
71.46%
LH
28.76%
Operating Margin
ABBV
35.5%
LH
10.55%
Profit Margin
ABBV
4.0%
LH
6.28%
ROE
ABBV
137.96%
LH
10.51%
ROA
ABBV
9.59%
LH
5.12%

Growth

Revenue Growth
ABBV
9.1%
LH
5.6%
Earnings Growth
ABBV
-88.7%
LH
15.7%

Financial Health

Debt/Equity
ABBV
--
LH
0.76
Current Ratio
ABBV
0.72
LH
1.42
Quick Ratio
ABBV
0.47
LH
0.99

Dividends

Dividend Yield
ABBV
3.05%
LH
1.11%
Payout Ratio
ABBV
490.15%
LH
27.53%

AI Verdict

ABBV NEUTRAL

The Advanced Deterministic Scorecard reveals a mixed health profile with a Piotroski F-Score of 4/9 indicating stable but not strong fundamentals, while the absence of an Altman Z-Score prevents a clear distress risk assessment. Despite robust operating margins and consistent revenue growth, the company faces significant headwinds from negative earnings growth, an extremely high P/E ratio, and a dangerously elevated payout ratio. Strong historical price performance and analyst buy sentiment are counterbalanced by bearish insider activity and deteriorating profitability trends. The stock appears to trade at a substantial premium to its intrinsic value, suggesting limited margin of safety.

Strengths
High operating margin (35.50%) indicating strong pricing power and cost control
Consistent revenue growth (9.10% YoY) outpacing sector average
Strong track record of earnings surprises (22 out of 25 quarters beat estimates)
Risks
Extremely high P/E ratio (163.63) vs forward P/E (15.42), suggesting potential overvaluation on trailing basis
Earnings growth collapsing (YoY: -88.70%, Q/Q: -88.10%) indicating severe profitability deterioration
Unsustainable dividend payout ratio (490.15%) threatening dividend security
LH NEUTRAL

Labcorp (LH) presents a mixed profile with a stable Piotroski F-Score of 4/9 and a current price ($259.57) positioned between its defensive Graham Number ($157.1) and growth-based intrinsic value ($308.57). While the company demonstrates strong earnings growth (15.7% YoY) and a highly attractive forward P/E of 13.46, these fundamentals are countered by a bearish technical trend and significant insider selling. The long-term earnings track record is exceptional, but the lack of immediate momentum and mediocre health score suggest a neutral short-term outlook.

Strengths
Strong earnings growth of 15.7% YoY
Highly attractive Forward P/E of 13.46 compared to current P/E of 24.82
Exceptional earnings track record with consistent beats over 25 quarters
Risks
Bearish insider sentiment with 7 sell transactions and 0 buys
Technical trend is completely bearish (0/100)
Modest revenue growth (5.6%) lagging behind earnings growth

Compare Another Pair

ABBV vs LH: Head-to-Head Comparison

This page compares AbbVie Inc. (ABBV) and Labcorp Holdings Inc. (LH) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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