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ABBV vs MRK

ABBV
AbbVie Inc.
NEUTRAL
Price
$219.26
Market Cap
$387.52B
Sector
Healthcare
AI Confidence
68%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
ABBV
163.63
MRK
16.66
Forward P/E
ABBV
15.42
MRK
12.42
P/B Ratio
ABBV
-146.66
MRK
5.7
P/S Ratio
ABBV
6.5
MRK
4.61
EV/EBITDA
ABBV
15.27
MRK
11.46

Profitability

Gross Margin
ABBV
71.46%
MRK
77.21%
Operating Margin
ABBV
35.5%
MRK
32.77%
Profit Margin
ABBV
4.0%
MRK
28.08%
ROE
ABBV
137.96%
MRK
36.88%
ROA
ABBV
9.59%
MRK
12.04%

Growth

Revenue Growth
ABBV
9.1%
MRK
5.0%
Earnings Growth
ABBV
-88.7%
MRK
-19.3%

Financial Health

Debt/Equity
ABBV
--
MRK
0.96
Current Ratio
ABBV
0.72
MRK
1.54
Quick Ratio
ABBV
0.47
MRK
0.96

Dividends

Dividend Yield
ABBV
3.05%
MRK
2.83%
Payout Ratio
ABBV
490.15%
MRK
45.05%

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
MRK NEUTRAL

MRK shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (28.1% margin)
Strong ROE of 36.9%
Risks
Premium vs Graham Number ($59.01)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

ABBV vs MRK: Head-to-Head Comparison

This page compares AbbVie Inc. (ABBV) and Merck & Co., Inc. (MRK) 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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