AbbVie vs. Pfizer: Which Healthcare Stock Is a Better Buy in 2026?
2026-09-04 18:30
•Brendan Coffey •The Motley Fool
•• ••••• Axe Cap view
Pfizer or AbbVie: Which Pharma Play Works for SA Investors in 2026?
AbbVie’s robust growth contrasts with Pfizer’s value, but local investors should lean toward Pfizer for margin and valuation appeal.
AbbVie’s success pivoting from Humira risks to new immunology blockbusters is impressive, but it trades at a premium compared to Pfizer. Pfizer’s pipeline is less flashy but diversified, especially with oncology and GLP-1 drug bets, and it’s valued at under 10 times forward earnings—making it a bargain for long-term patience. For JSE investors, currency matters. USD/ZAR volatility can swing returns significantly since these earnings are dollar-based. Pfizer’s more modest growth means it might weather rand weakness better than AbbVie, which depends heavily on rapid top-line gains. In local terms, neither pharma giant has a clean JSE equivalent, so USD/ZAR remains the best barometer of forex risk when betting on these names. Consider Pfizer if you want value with a steadier income profile. Be cautious if new trial outcomes or regulatory shifts stall Pfizer’s pipeline; that could turn its valuation story on its head. this is just our opinion and not financial advice
Buy Pfizer for a disciplined value play in global pharma exposure, while watching USD/ZAR closely for currency risk. Avoid AbbVie unless you’re confident in sustaining strong growth despite premium valuation.
- PFE
- USD/ZAR
- clinical trial failures or FDA delays for Pfizer
- rand volatility impacting dollar-based returns
6/10
AbbVie has successfully diversified beyond its blockbuster Humira with strong immunology drugs (Skyrizi and Rinvoq), while Pfizer is leveraging its cash position to build oncology and GLP-1 pipelines. Despite AbbVie's stronger growth trajectory, Pfizer offers better valuation metrics with lower P/E and P/S ratios, making it the preferred choice for long-term value investors willing to wait for new product launches.
Our take is based on reporting first published by The Motley Fool.