Johnson & Johnson (JNJ) and Its Peers Head to Head Analysis

Johnson & Johnson (NYSE:JNJ) is one of 897 public companies in the “Pharmaceuticals” industry, but how does it compare to its competitors? We will compare Johnson & Johnson to related businesses based on the strength of its dividends, earnings, risk, institutional ownership, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

69.6% of Johnson & Johnson shares are owned by institutional investors. Comparatively, 32.4% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.2% of Johnson & Johnson shares are owned by company insiders. Comparatively, 14.2% of shares of all “Pharmaceuticals” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Johnson & Johnson has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Johnson & Johnson’s competitors have a beta of -4.21, meaning that their average share price is 521% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Johnson & Johnson	$99.33 billion	$26.80 billion	41.42
Johnson & Johnson Competitors	$4.64 billion	$3.23 billion	545.42

Johnson & Johnson has higher revenue and earnings than its competitors. Johnson & Johnson is trading at a lower price-to-earnings ratio than its competitors, 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 2.0%. 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 3.3% and pay out 49.5% of their earnings in the form of a dividend. Johnson & Johnson has raised its dividend for 64 consecutive years. Johnson & Johnson lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Johnson & Johnson and its competitors’ 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	-2,380.91%	-221.73%	-15.99%

Analyst Recommendations

This is a summary of current recommendations for Johnson & Johnson and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson & Johnson	0	8	17	1	2.73
Johnson & Johnson Competitors	7764	13847	25695	1031	2.41

Johnson & Johnson currently has a consensus target price of $275.92, suggesting a potential upside of 0.92%. As a group, “Pharmaceuticals” companies have a potential upside of 24.24%. Given Johnson & Johnson’s competitors higher possible upside, analysts clearly believe Johnson & Johnson has less favorable growth aspects than its competitors.

Summary

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

About Johnson & Johnson

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.