Head-To-Head Analysis: Johnson & Johnson (JNJ) & Its Competitors
Johnson & Johnson (NYSE: JNJ) is one of 116 publicly-traded companies in the “Pharmaceuticals” industry, but how does it weigh in compared to its peers? We will compare Johnson & Johnson to similar businesses based on the strength of its analyst recommendations, institutional ownership, dividends, profitability, earnings, valuation and risk.
Institutional and Insider Ownership
66.1% of Johnson & Johnson shares are held by institutional investors. Comparatively, 42.4% of shares of all “Pharmaceuticals” companies are held by institutional investors. 0.2% of Johnson & Johnson shares are held by company insiders. Comparatively, 11.7% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Johnson & Johnson has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Johnson & Johnson’s peers have a beta of 32.56, meaning that their average stock price is 3,156% more volatile than the S&P 500.
This is a summary of recent 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||846||3755||6778||185||2.54|
Johnson & Johnson currently has a consensus price target of $143.56, indicating a potential upside of 2.48%. As a group, “Pharmaceuticals” companies have a potential upside of 21.57%. Given Johnson & Johnson’s peers stronger consensus rating and higher possible upside, analysts plainly believe Johnson & Johnson has less favorable growth aspects than its peers.
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 65.5% of their earnings in the form of a dividend. Johnson & Johnson has increased its dividend for 54 consecutive years.
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||-2,925.59%||-70.76%||-9.78%|
Earnings & Valuation
This table compares Johnson & Johnson and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Johnson & Johnson||$71.89 billion||$16.54 billion||24.32|
|Johnson & Johnson Competitors||$8.39 billion||$1.12 billion||133.49|
Johnson & Johnson has higher revenue and earnings than its peers. Johnson & Johnson is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Johnson & Johnson peers beat Johnson & Johnson on 8 of the 15 factors compared.
About Johnson & Johnson
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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