L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) vs. AbbVie Inc. (ABBV) Stock Comparison & Valuation | Edwyn

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L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) vs. AbbVie Inc. (ABBV) Stock Comparison & Valuation | Edwyn

Updated 2026-06-10 07:02 UTC

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LHX screens cheaper than ABBV on every presented trading multiple, but the comparison is distorted by very different businesses and ABBV’s much stronger profitability and ROIC, making the apparent upside less straightforward than the model implies.

Actionable Takeaway

If you believe LHX can sustain its current growth and quality profile while justifying a valuation closer to ABBV on a P/E basis, then hold or accumulate LHX because the current price is well below ABBV-implied value; however, if you think ABBV’s far superior margins and ROIC deserve the higher multiple, the apparent upside is likely overstated.

On the provided P/E basis, LHX is valued at 36.1x versus ABBV at 95.5x, which mechanically drives the large implied upside to $814.76 or 164.4%. However, ABBV-implied range is very wide and the historical band for LHX is much lower, suggesting the current price already sits close to its own normal trading range rather than the full ABBV-based valuation.

Supporting Metrics

Key Risks

LHX’s valuation depends heavily on a P/E comparison despite ABBV’s much higher ROIC of 26.7% and operating margin of 24.6%.
LHX’s Altman Z-Score of 2.47 suggests only moderate financial safety, so downside risk is not negligible.
The comparison is imperfect because ABBV’s business economics and capital structure differ substantially, especially on gross margin (70.2% vs 8.8%) and net debt/EBITDA (2.9x vs 0.8x).