ABBOTT LABORATORIES vs Novartis AG, two Drug Manufacturers stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Abbott carries 0.65 of debt to equity running devices, diagnostics, and nutrition; Novartis carries none running pure pharmaceuticals, and the cleaner sheet also earns the better economics: a 32.4% operating margin against 12.1%, 30% on equity against 11.9%, and a 5.8% free-cash yield against 4.5%. The market prices the diversified, lower-margin business dearer anyway, 26.3 times earnings against 21.5, the premium falling on Abbott's steadiness rather than Novartis' profitability, and on the patent-cliff anxieties pharma multiples always carry. Abbott's 2.6% dividend answers Novartis' unlisted payout on this page. The pair prices diversification itself; the buyer decides whether it is worth five turns.
Comparison updated 2026-07-10.
| Metric | ABT | NVS |
|---|---|---|
| Price | $93.86 | $155.27 |
| Market cap | $164.0B | $301.1B |
| Sector | Drug Manufacturers | Drug Manufacturers |
| Stage | Mature | Mature |
| Implied growth (priced in) | +8.8% | +8.3% |
| P/E | 26.3 | 21.5 |
| P/B | 3.11 | 6.47 |
| P/S | 3.63 | 5.52 |
| EV/EBITDA | 20.8 | 16.4 |
| Revenue growth | +6.6% | +6.4% |
| Gross margin | — | 78.8% |
| Operating margin | 12.1% | 32.4% |
| Net margin | 13.9% | 25.6% |
| Return on equity | 11.9% | 30.0% |
| Return on assets | 5.7% | 12.6% |
| Return on invested capital | 6.6% | 32.4% |
| FCF yield | 4.5% | 5.8% |
| Dividend yield | 2.6% | — |
| Debt / equity | 0.65 | 0.00 |
| Current ratio | 1.39 | 1.12 |
| Altman Z (solvency) | 7.16 | 3.86 |
| Piotroski F (quality) | 6 / 9 | 8 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.