Comprehensive Stock Comparison
Compare Novartis AG (NVS) vs AbbVie Inc. (ABBV) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | NVS | 6.0% revenue growth vs ABBV's 3.7% |
| Value | ABBV | Lower P/E (16.0x vs 19.0x) |
| Quality / Margins | NVS | 24.9% net margin vs ABBV's 4.0% |
| Stability / Safety | NVS | Beta 0.24 vs ABBV's 0.42, lower leverage |
| Dividends | ABBV | 2.7% yield, 12-year raise streak, vs NVS's 2.4% |
| Momentum (1Y) | NVS | +57.6% vs ABBV's +14.2% |
| Efficiency (ROA) | NVS | 12.1% ROA vs ABBV's 1.8%, ROIC 18.8% vs 11.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Novartis is a global pharmaceutical company that develops and markets innovative prescription drugs and generic medicines. It generates revenue primarily from its Innovative Medicines segment — which includes oncology, immunology, and cardiovascular drugs — and its Sandoz generics division, with Innovative Medicines contributing roughly 80% of total sales. The company's competitive advantage lies in its deep R&D pipeline, strong patent protection for blockbuster drugs, and global commercial infrastructure that spans both branded and generic markets.
AbbVie is a global biopharmaceutical company that develops and markets innovative medicines for serious health conditions. It generates revenue primarily from prescription drug sales — with immunology drugs like Skyrizi and Rinvoq now driving growth as Humira faces biosimilar competition — and also earns income from its aesthetics portfolio including Botox. The company's competitive advantage lies in its deep R&D pipeline, strong patent portfolio, and established commercial infrastructure for launching new blockbuster therapies.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
NVS leads in 5 of 6 categories (Financial Metrics, Valuation Metrics). ABBV leads in 1 (Analyst Outlook).
Financial Metrics (TTM)
ABBV and NVS operate at a comparable scale, with $59.6B and $56.1B in trailing revenue. NVS is the more profitable business, keeping 24.9% of every revenue dollar as net income compared to ABBV's 4.0%. On growth, ABBV holds the edge at +9.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | NVSNovartis AG | ABBVAbbVie Inc. |
|---|---|---|
| RevenueTrailing 12 months | $56.1B | $59.6B |
| EBITDAEarnings before interest/tax | $22.4B | $17.3B |
| Net IncomeAfter-tax profit | $14.0B | $2.4B |
| Free Cash FlowCash after capex | $15.6B | $20.6B |
| Gross MarginGross profit ÷ Revenue | +73.2% | +69.7% |
| Operating MarginEBIT ÷ Revenue | +30.4% | +15.2% |
| Net MarginNet income ÷ Revenue | +24.9% | +4.0% |
| FCF MarginFCF ÷ Revenue | +27.9% | +34.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | -1.6% | +9.1% |
| EPS Growth (YoY)Latest quarter vs prior year | -11.3% | -88.7% |
Valuation Metrics
At 23.5x trailing earnings, NVS trades at a 76% valuation discount to ABBV's 97.1x P/E. On an enterprise value basis, NVS's 15.5x EV/EBITDA is more attractive than ABBV's 27.0x.
| Metric | NVSNovartis AG | ABBVAbbVie Inc. |
|---|---|---|
| Market CapShares × price | $321.8B | $410.1B |
| Enterprise ValueMkt cap + debt − cash | $347.4B | $472.4B |
| Trailing P/EPrice ÷ TTM EPS | 23.45x | 97.08x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.99x | 15.95x |
| PEG RatioP/E ÷ EPS growth rate | 1.53x | — |
| EV / EBITDAEnterprise value multiple | 15.49x | 26.96x |
| Price / SalesMarket cap ÷ Revenue | 5.87x | 7.28x |
| Price / BookPrice ÷ Book value/share | 7.08x | 122.29x |
| Price / FCFMarket cap ÷ FCF | 18.19x | 23.00x |
Profitability & Efficiency
ABBV delivers a 62.2% return on equity — every $100 of shareholder capital generates $62 in annual profit, vs $30 for NVS. NVS carries lower financial leverage with a 0.80x debt-to-equity ratio, signaling a more conservative balance sheet compared to ABBV's 20.17x.
| Metric | NVSNovartis AG | ABBVAbbVie Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +30.0% | +62.2% |
| ROA (TTM)Return on assets | +12.1% | +1.8% |
| ROICReturn on invested capital | +18.8% | +11.1% |
| ROCEReturn on capital employed | +21.1% | +9.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 6 |
| Debt / EquityFinancial leverage | 0.80x | 20.17x |
| Net DebtTotal debt minus cash | $25.6B | $62.3B |
| Cash & Equiv.Liquid assets | $11.4B | $5.5B |
| Total DebtShort + long-term debt | $37.0B | $67.8B |
| Interest CoverageEBIT ÷ Interest expense | 15.35x | 1.58x |
Total Returns (with DRIP)
A $10,000 investment in ABBV five years ago would be worth $24,166 today (with dividends reinvested), compared to $21,947 for NVS. Over the past 12 months, NVS leads with a +57.6% total return vs ABBV's +14.2%. The 3-year compound annual growth rate (CAGR) favors NVS at 30.6% vs ABBV's 17.7% — a key indicator of consistent wealth creation.
| Metric | NVSNovartis AG | ABBVAbbVie Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +21.7% | +1.9% |
| 1-Year ReturnPast 12 months | +57.6% | +14.2% |
| 3-Year ReturnCumulative with dividends | +122.8% | +63.1% |
| 5-Year ReturnCumulative with dividends | +119.5% | +141.7% |
| 10-Year ReturnCumulative with dividends | +221.6% | +413.0% |
| CAGR (3Y)Annualised 3-year return | +30.6% | +17.7% |
Risk & Volatility
NVS is the less volatile stock with a 0.24 beta — it tends to amplify market swings less than ABBV's 0.42 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. NVS currently trades 98.9% from its 52-week high vs ABBV's 94.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NVSNovartis AG | ABBVAbbVie Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.24x | 0.42x |
| 52-Week HighHighest price in past year | $170.46 | $244.81 |
| 52-Week LowLowest price in past year | $97.72 | $164.39 |
| % of 52W HighCurrent price vs 52-week peak | +98.9% | +94.8% |
| RSI (14)Momentum oscillator 0–100 | 70.2 | 49.6 |
| Avg Volume (50D)Average daily shares traded | 1.7M | 5.7M |
Analyst Outlook
Wall Street rates NVS as "Hold" and ABBV as "Buy". Consensus price targets imply 10.4% upside for ABBV (target: $256) vs -24.7% for NVS (target: $127). For income investors, ABBV offers the higher dividend yield at 2.68% vs NVS's 2.38%.
| Metric | NVSNovartis AG | ABBVAbbVie Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $127.00 | $256.15 |
| # AnalystsCovering analysts | 25 | 39 |
| Dividend YieldAnnual dividend ÷ price | +2.4% | +2.7% |
| Dividend StreakConsecutive years of raises | 6 | 12 |
| Dividend / ShareAnnual DPS | $4.02 | $6.22 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.9% | +0.4% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Novartis AG (NVS) | 100 | 183.75 | +83.7% |
| AbbVie Inc. (ABBV) | 100 | 254.41 | +154.4% |
AbbVie Inc. (ABBV) returned +142% over 5 years vs Novartis AG (NVS)'s +119%. A $10,000 investment in ABBV 5 years ago would be worth $24,166 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Novartis AG (NVS) | $49.4B | $54.8B | +10.9% |
| AbbVie Inc. (ABBV) | $25.6B | $56.3B | +119.7% |
Novartis AG's revenue grew from $49.4B (2016) to $54.8B (2025) — a 1.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Novartis AG (NVS) | 13.6% | 25.6% | +88.9% |
| AbbVie Inc. (ABBV) | 23.2% | 7.6% | -67.3% |
Novartis AG's net margin went from 14% (2016) to 26% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Novartis AG (NVS) | 21.6 | 19.2 | -11.1% |
| AbbVie Inc. (ABBV) | 29.3 | 74.4 | +153.9% |
Novartis AG has traded in a 8x–29x P/E range over 9 years; current trailing P/E is ~23x. AbbVie Inc. has traded in a 17x–74x P/E range over 8 years; current trailing P/E is ~97x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Novartis AG (NVS) | 2.8 | 7.19 | +156.8% |
| AbbVie Inc. (ABBV) | 3.63 | 2.39 | -34.2% |
Novartis AG's EPS grew from $2.80 (2016) to $7.19 (2025) — a 11% CAGR.
Chart 6Free Cash Flow — 5 Years
Novartis AG generated $18B FCF in 2025 (+41% vs 2021). AbbVie Inc. generated $18B FCF in 2024 (-19% vs 2021).
NVS vs ABBV: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NVS or ABBV a better buy right now?
Novartis AG (NVS) offers the better valuation at 23.5x trailing P/E (19.0x forward), making it the more compelling value choice. Analysts rate AbbVie Inc. (ABBV) a "Buy" — based on 39 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — NVS or ABBV?
On trailing P/E, Novartis AG (NVS) is the cheapest at 23.5x versus AbbVie Inc. at 97.1x. On forward P/E, AbbVie Inc. is actually cheaper at 16.0x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — NVS or ABBV?
Over the past 5 years, AbbVie Inc. (ABBV) delivered a total return of +141.7%, compared to +119.5% for Novartis AG (NVS). A $10,000 investment in ABBV five years ago would be worth approximately $24K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ABBV returned +413.0% versus NVS's +221.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — NVS or ABBV?
By beta (market sensitivity over 5 years), Novartis AG (NVS) is the lower-risk stock at 0.24β versus AbbVie Inc.'s 0.42β — meaning ABBV is approximately 75% more volatile than NVS relative to the S&P 500. On balance sheet safety, Novartis AG (NVS) carries a lower debt/equity ratio of 80% versus 20% for AbbVie Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — NVS or ABBV?
Novartis AG (NVS) is the more profitable company, earning 25.6% net margin versus 7.6% for AbbVie Inc. — meaning it keeps 25.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NVS leads at 31.2% versus 16.2% for ABBV. At the gross margin level — before operating expenses — NVS leads at 75.0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is NVS or ABBV more undervalued right now?
On forward earnings alone, AbbVie Inc. (ABBV) trades at 16.0x forward P/E versus 19.0x for Novartis AG — 3.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ABBV: 10.4% to $256.15.
07Which pays a better dividend — NVS or ABBV?
All stocks in this comparison pay dividends. AbbVie Inc. (ABBV) offers the highest yield at 2.7%, versus 2.4% for Novartis AG (NVS).
08Is NVS or ABBV better for a retirement portfolio?
For long-horizon retirement investors, Novartis AG (NVS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.24), 2.4% yield, +221.6% 10Y return). Both have compounded well over 10 years (NVS: +221.6%, ABBV: +413.0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between NVS and ABBV?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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