Critical Contrast: Johnson & Johnson (JNJ) & The Competition
Johnson & Johnson (NYSE: JNJ) is one of 116 public companies in the “Pharmaceuticals” industry, but how does it contrast to its peers? We will compare Johnson & Johnson to related businesses based on the strength of its valuation, institutional ownership, dividends, earnings, analyst recommendations, risk and profitability.
This table compares Johnson & Johnson and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Johnson & Johnson||21.28%||27.68%||13.41%|
|Johnson & Johnson Competitors||-2,859.62%||-68.13%||-9.39%|
Johnson & Johnson pays an annual dividend of $3.36 per share and has a dividend yield of 2.4%. Johnson & Johnson pays out 58.3% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.5% and pay out 66.0% of their earnings in the form of a dividend. Johnson & Johnson has increased its dividend for 54 consecutive years.
This is a summary of current ratings for Johnson & Johnson and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Johnson & Johnson||4||5||10||0||2.32|
|Johnson & Johnson Competitors||842||3777||6804||185||2.55|
Johnson & Johnson currently has a consensus price target of $143.56, suggesting a potential upside of 2.97%. As a group, “Pharmaceuticals” companies have a potential upside of 23.97%. Given Johnson & Johnson’s peers stronger consensus rating and higher possible upside, analysts clearly believe Johnson & Johnson has less favorable growth aspects than its peers.
Volatility and Risk
Johnson & Johnson has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Johnson & Johnson’s peers have a beta of 0.90, suggesting that their average stock price is 10% less volatile than the S&P 500.
Valuation and Earnings
This table compares Johnson & Johnson and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Johnson & Johnson||$74.36 billion||$25.02 billion||24.20|
|Johnson & Johnson Competitors||$8.08 billion||$2.63 billion||0.05|
Johnson & Johnson has higher revenue and earnings than its peers. Johnson & Johnson is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Insider & Institutional Ownership
66.1% of Johnson & Johnson shares are owned by institutional investors. Comparatively, 44.3% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.2% of Johnson & Johnson shares are owned by company insiders. Comparatively, 12.0% of shares of all “Pharmaceuticals” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Johnson & Johnson beats its peers on 8 of the 15 factors compared.
Johnson & Johnson Company Profile
Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. It operates through three segments: Consumer, Pharmaceutical and Medical Devices. Its primary focus is products related to human health and well-being. The Consumer segment includes a range of products used in the baby care, oral care, skin care, over-the-counter pharmaceutical, women’s health and wound care markets. The Pharmaceutical segment is focused on five therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, and cardiovascular and metabolic diseases. The Medical Devices segment includes a range of products used in the orthopedic, surgery, cardiovascular, diabetes care and vision care fields. Its research facilities are located in the United States, Belgium, Brazil, Canada, China, France, Germany, India, Israel, Japan, the Netherlands, Singapore, Switzerland and the United Kingdom.
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