AbbVie vs. Bristol Myers Squibb: Which Healthcare Stock Is a Better Buy for 2027?
Is your portfolio ready for the shifting landscape of modern medicine? Choosing between AbbVie Inc. (ABBV -2.39%) and Bristol Myers Squibb Co. (BMY +0.38%) depends on whether you prefer high-growth immunology or deep-value oncology.
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ABBV & BMY: Performance Comparison
Key Financial Metrics
ABBV – AbbVie
$287.85
–2.39% (-$7.05)
BMY – Bristol Myers Squibb
$62.72
+0.38% (+$0.24)
Market Cap
$521B
52wk Range
$190.75 – $298.74
Gross Margin
85.07%
P/E Ratio
83.38
EPS (TTM)
$5.82
Dividend & Yield
$6.92 (2.35%)
Market Cap
$128B
52wk Range
$45.27 – $68.64
Gross Margin
66.32%
P/E Ratio
13.84
EPS (TTM)
$4.51
Dividend & Yield
$2.52 (4.03%)
ABBV – AbbVie
$287.85
–2.39% (-$7.05)
Market Cap
$521B
52wk Range
$190.75 – $298.74
Gross Margin
85.07%
P/E Ratio
83.38
EPS (TTM)
$5.82
Dividend & Yield
$6.92 (2.35%)
BMY – Bristol Myers Squibb
$62.72
+0.38% (+$0.24)
Market Cap
$128B
52wk Range
$45.27 – $68.64
Gross Margin
66.32%
P/E Ratio
13.84
EPS (TTM)
$4.51
Dividend & Yield
$2.52 (4.03%)
AbbVie has successfully transitioned beyond its legacy blockbuster treatments by focusing on its next generation of immunology drugs. Bristol Myers Squibb centers its strategy on leading therapies for cancer and blood disorders. Both companies operate in a competitive environment, fighting against patent expirations while racing to commercialize new discoveries.
The case for AbbVie
AbbVie is a global leader among pharmaceutical stocks that develops therapies for complex health challenges across immunology, oncology, and neuroscience. It distributes its products primarily through three major U.S. wholesalers: McKesson Corp. (MCK +0.90%), Cardinal Health (CAH +1.47%), and Cencora Inc. (COR +0.42%). These three partners account for nearly all of its domestic pharmaceutical sales, and this customer concentration adds a layer of risk to the business.
In FY 2025, revenue reached about $61.2 billion, representing growth of roughly 8.6% compared to the previous year. This increase was supported by the strong performance of newer immunology treatments that are filling the gap left by older products. The company reported net income of approximately $4.2 billion for the period, resulting in a net margin of about 6.9%.
As of its December 2025 balance sheet, the debt-to-equity ratio is negative 21.1x, which indicates that total liabilities exceed shareholder equity. Its current ratio, which helps investors understand if a company can cover its short-term debts with short-term assets, is roughly 0.7x. Free cash flow for the fiscal year was about $17.8 billion, which is the cash remaining after paying for operations and equipment.
The case for Bristol Myers Squibb
Bristol Myers Squibb is a prominent player in the biopharmaceutical space, focusing on innovative medicines for oncology, hematology, and neuroscience. The company maintains a strong global presence and serves patients through a network of wholesalers and specialty pharmacies. Similar to its peers, it relies on major distributors like McKesson and Cardinal Health to reach its primary markets.
In FY 2025, revenue was approximately $48.2 billion, which was roughly flat, with a 0.2% decrease from the prior year. Despite this stable revenue, the company achieved a healthy net income of about $7.1 billion. This represented a significant swing back to profitability following a net loss in the prior fiscal year and resulted in a net margin of approximately 14.6%.
As of its December 2025 balance sheet, the debt-to-equity ratio is nearly 2.6x. This ratio measures how much debt a company uses to finance its assets relative to the value of shareholder equity. The current ratio stands at approximately 1.3x. Free cash flow, calculated as cash from operations minus capital expenditures, was around $12.8 billion for the year.
Risk profile comparison
AbbVie faces significant risks from patent expirations and competition from biosimilars. Its major product, Humira, faces global competition that could lead to substantial revenue loss. Additionally, the company relies heavily on Skyrizi and Rinvoq, which together accounted for roughly 42% of total net revenues in 2025. Legislative actions such as the Inflation Reduction Act also create pricing pressures on key products like Botox.
Bristol Myers Squibb faces the risk of losing market exclusivity for its top-selling drugs, such as Eliquis and Opdivo. The company is also subject to intense pricing pressure from government negotiations and the Inflation Reduction Act. Legal challenges add another layer of uncertainty, including a revived $6.7 billion lawsuit related to the acquisition of Celgene. Success depends heavily on the research and development pipeline to replace revenue from legacy products.
Valuation comparison
Bristol Myers Squibb appears to be the more value-oriented choice for investors because it trades at much lower multiples than its peer.
MetricAbbVieBristol-Myers SquibbForward P/E21.2×9.7xP/S ratio7.9×2.6x
Valuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.
To help investors understand these figures, the Forward P/E measures the stock price against its future earnings estimates. The P/S ratio compares the market value of the company to its sales over the past twelve months.
Which stock would I buy for 2027?
Bristol Myers Squibb has made positive strides, with its newer growth brands gaining traction and some interesting candidates in the pipeline. The stock is cheap, and that seems to be for good reason. Investors have already priced in much of the upcoming difficulty, which softens the downside but does not make it an obvious buy right now. Bristol Myers Squibb’s recovery timeline is hard to predict.
Revenue for the current fiscal year should edge up 3% to $49.9 billion, with a much healthier rise in net income of more than 40% to $11.2 billion.
Bristol Myers has attractively low forward price-to-earnings and price-to-sales ratios, but, of course, that reflects some continued rough sailing ahead.
Meanwhile, AbbVie is buying itself growth with its recent deal to acquire Apogee Therapeutics. Its two relatively new immunology products, Skyrizi and Rinvoq, have proven to be true growth drivers for the business, and investors are hopeful that the Food & Drug Administration’s recent decision on the Parkinson’s treatment Juvmo bodes well for the company. Sales for that treatment are expected to be gradual, especially until Medicare coverage is available, which isn’t expected until 2028. It is expecte
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.