AbbVie vs Johnson & Johnson
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KIRA’s take AI analyst
I put AbbVie and Johnson & Johnson side by side, using each one’s latest annual report. Here is what stands out:
- Johnson & Johnson is the larger business, with $94.2B of revenue in fiscal 2025 against $61.2B for AbbVie, about 1.5 times as much.
- AbbVie grew revenue faster (8.6%, against 6.1%).
- AbbVie turned more of its sales into free cash flow (29.1% FCF margin, against 20.9%).
- Johnson & Johnson earned a higher return on the capital invested in it (28.6%, against 15.7%).
- Investors pay more for each dollar of AbbVie’s earnings: a P/E of 81.0x against 40.4x for Johnson & Johnson.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
AbbVie
ABBV
5/9
Revenue growth5-year growthGross marginFCF marginPiotroski F-score
Johnson & Johnson
JNJ
3/9
Net marginReturn on capitalNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | ABBV FY25 | JNJ FY25 |
|---|---|---|
| Size | ||
| Market cap | $507.8B | $652.1B |
| Revenue | $61.2B | $94.2B |
| Free cash flow | $17.8B | $19.7B |
| Net income | $4.2B | $26.8B |
| Growth | ||
| Revenue growth | 8.6% | 6.1% |
| 5-year growth | 6.0% | 2.7% |
| Share count change | 0.0% | 0.0% |
| Profitability | ||
| Gross margin | 70.2% | 67.9% |
| Operating margin | 24.7% | — |
| Net margin | 6.9% | 28.5% |
| FCF margin | 29.1% | 20.9% |
| Return on capital | 15.7% | 28.6% |
| Return on equity | — | 35.0% |
| Balance sheet | ||
| Net debt | $61.8B | $27.8B |
| Net debt / EBITDA | 2.7x | 0.7x |
| Dividends and buybacks | $12.6B | $18.3B |
| Valuation & quality | ||
| P/E | 81.0x | 40.4x |
| Piotroski F-score | 7 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.