The Motley Fool sees greater upside in AbbVie, citing its 18.8x forward P/E and pipeline, compared with Johnson & Johnson’s 23.5x. J&J posted the higher FY2025 net margin; AbbVie faces patent and revenue-concentration risks, while J&J faces talc litigation.
In FY2025, AbbVie reported $61.2 billion in revenue, $4.2 billion in net income and $17.8 billion in free cash flow; J&J reported $94.2 billion, $26.8 billion and $19.7 billion, respectively. Their net margins were about 7% and 29%. Price-to-sales ratios were 7.3x and 6.7x, respectively. Financial Modeling Prep supplied the valuation data, which may differ from other providers.
AbbVie’s risks include patent expirations, two drugs accounting for about 42% of net revenue and pricing pressure. The article projects AbbVie revenue of $67.2 billion and net income of $14.6 billion this year, and says investors hope a later-year FDA decision on a Parkinson’s treatment will bode well for the company. J&J faces talc-powder litigation and costs tied to its planned Orthopedics separation; its revenue is projected at $101 billion this year.
