Contrasting Johnson & Johnson (JNJ) & Its Competitors

Johnson & Johnson (NYSE:JNJ) is one of 896 publicly-traded companies in the “Pharmaceuticals” industry, but how does it weigh in compared to its rivals? We will compare Johnson & Johnson to related businesses based on the strength of its earnings, profitability, valuation, analyst recommendations, dividends, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for Johnson & Johnson and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson & Johnson	0	8	17	1	2.73
Johnson & Johnson Competitors	7777	13864	25737	1034	2.41

Johnson & Johnson currently has a consensus target price of $275.92, suggesting a potential downside of 0.26%. As a group, “Pharmaceuticals” companies have a potential upside of 24.04%. Given Johnson & Johnson’s rivals higher possible upside, analysts plainly believe Johnson & Johnson has less favorable growth aspects than its rivals.

Profitability

This table compares Johnson & Johnson and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Johnson & Johnson	16.20%	31.64%	13.04%
Johnson & Johnson Competitors	-2,381.20%	-218.66%	-15.76%

Earnings & Valuation

This table compares Johnson & Johnson and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Johnson & Johnson	$94.19 billion	$26.80 billion	41.91
Johnson & Johnson Competitors	$3.56 billion	$3.19 billion	548.12

Johnson & Johnson has higher revenue and earnings than its rivals. Johnson & Johnson is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Johnson & Johnson pays an annual dividend of $5.36 per share and has a dividend yield of 1.9%. Johnson & Johnson pays out 81.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Pharmaceuticals” companies pay a dividend yield of 3.2% and pay out 48.2% of their earnings in the form of a dividend. Johnson & Johnson has increased its dividend for 64 consecutive years. Johnson & Johnson lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

69.6% of Johnson & Johnson shares are owned by institutional investors. Comparatively, 32.5% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.2% of Johnson & Johnson shares are owned by insiders. Comparatively, 14.1% of shares of all “Pharmaceuticals” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Johnson & Johnson has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, Johnson & Johnson’s rivals have a beta of -3.76, suggesting that their average share price is 476% less volatile than the S&P 500.

Summary

Johnson & Johnson beats its rivals on 10 of the 15 factors compared.

Johnson & Johnson Company Profile

Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension. The MedTech segment includes a portfolio of products used in the interventional solutions, orthopaedics, surgery, and vision categories. The company was founded by Robert Wood Johnson I, James Wood Johnson, and Edward Mead Johnson Sr. in 1887 and is headquartered in New Brunswick, NJ.