Pfizer vs. AbbVie: Is the Cheaper Pharma Stock Really the Better Investment?
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- ABBV
Pfizer Inc. (NYSE:PFE) trades at a considerable discount to AbbVie Inc. (NYSE:ABBV), despite both companies reporting growth in important parts of their pharmaceutical portfolios. According to Yahoo Finance’s September 23, 2026 valuation snapshot, Pfizer trades at 9.67 times forward earnings, compared with AbbVie’s 16.39 times.
That makes Pfizer cheaper on a forward P/E basis, but their latest earnings reveal why the valuation gap deserves closer examination. AbbVie’s growth is already translating into higher companywide earnings, while Pfizer’s newer medicines are still working to offset weaker areas of its business. But before we get into the comparison, take a look at our ranking of the best healthcare stocks to buy according to hedge funds. Check out the complete list here for more insight into the sector.
Bull Case
AbbVie’s second-quarter performance provides a clear explanation for its premium. Revenue increased 10.2% year over year to $16.99 billion, while adjusted diluted earnings per share rose 22.9% to $3.65. Much of that growth came from Skyrizi and Rinvoq, which generated $5.51 billion and $2.53 billion in quarterly revenue, respectively. Both medicines recorded growth exceeding 24%, helping compensate for Humira’s continued decline.
The significance extends beyond individual product performance, as AbbVie Inc. (NYSE:ABBV) has demonstrated that its replacement medicines can generate enough revenue to support companywide expansion. That gives investors tangible evidence of earnings growth rather than depending primarily on future commercial opportunities. Read more extensively about AbbVie’s bull and bear case here.
Pfizer’s results tell a more complicated story, although there are encouraging developments. Its second-quarter revenue increased 3% to approximately $15 billion, representing 1% operational growth. Excluding its COVID-19 products, Comirnaty and Paxlovid, operational revenue increased 5%. More notably, Pfizer Inc. (NYSE:PFE) reported 18% operational growth from its launched and acquired products. Individual medicines also demonstrated momentum, with Eliquis revenue increasing 19% operationally, Padcev growing 23%, and Lorbrena climbing 37%.
These results indicate that Pfizer’s discounted valuation does not reflect an absence of growing products. Instead, the challenge is that their contributions have not yet produced substantial growth across the entire company. We meticulously crafted a list of the7 Best Pharma Stocks to Invest In Now. Access the complete list here.
