AbbVie Inc. (ABBV) vs Microsoft Corporation (MSFT)
A side-by-side comparison of AbbVie Inc. and Microsoft Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 28, 2026. Differences are shown without an overall score or investment verdict.
Different business models: ABBV is classified in Healthcare; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
ABBV
AbbVie Inc.
$263.48HealthcareDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — ABBV vs MSFT
growth of $100 · dividends reinvested · last 14yABBV +1164.7%MSFT +1735.8%MSFT compounded faster
ABBV MSFT
ABBV vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $465.51B market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 125.98 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 5.79% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 4.59% CAGR).
- •ABBV pays the higher dividend yield (2.62% vs 0.91%).
Metrics side by side
Valuation
| Metric | ABBV | MSFT |
|---|---|---|
| P/E ratio | 125.98 | 23.16 |
| Forward P/E | N/A | 22.87 |
| P/S ratio | 7.26 | 9.10 |
| P/B ratio | 16.57 | 6.99 |
| PEG ratio | N/A | 2.34 |
| EV / EBITDA | 20.46 | 15.53 |
| FCF yield | 4.58% | 2.52% |
Profitability
| Metric | ABBV | MSFT |
|---|---|---|
| Gross margin | 70.68% | 68.31% |
| Operating margin | 27.60% | 46.80% |
| Net margin | 5.79% | 39.34% |
| ROE | 13.23% | 30.22% |
| ROIC | 12.97% | 21.63% |
Dividends
| Metric | ABBV | MSFT |
|---|---|---|
| Dividend yield | 2.62% | 0.91% |
| Payout ratio | 284.39% | 25.99% |
Growth (annualized)
| Metric | ABBV | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 4.59% | 14.75% |
| EPS CAGR (5Y) | -2.79% | 18.68% |
| FCF CAGR (5Y) | 3.24% | 6.27% |
| Total return CAGR (5Y) | 21.24% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, ABBV or MSFT?
- MSFT has the lower trailing P/E: ABBV trades at 125.98 and MSFT at 23.16. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, ABBV or MSFT?
- Over the past five years, MSFT grew revenue faster — ABBV at a 4.59% CAGR versus MSFT at 14.75%.
- Does ABBV or MSFT pay a bigger dividend?
- ABBV yields 2.62% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is ABBV or MSFT more profitable?
- MSFT runs the higher net margin — ABBV at 5.79% versus MSFT at 39.34%.
- How have ABBV and MSFT total returns compared?
- Over the past 10 years, ABBV delivered 19.57% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
AbbVie P/E ratioMicrosoft P/E ratioAbbVie dividend yieldMicrosoft dividend yieldAbbVie ROEMicrosoft ROEAbbVie operating marginMicrosoft operating marginAbbVie revenue growthMicrosoft revenue growthAbbVie free cash flowMicrosoft free cash flow
AbbVie & Microsoft appear in these rankings
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Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified July 28, 2026.