Johnson & Johnson (NYSE: JNJ) is one of 116 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, institutional ownership, dividends, profitability, risk, valuation and analyst recommendations.

Valuation and Earnings

This table compares Johnson & Johnson and its rivals 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 -0.02

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

Volatility and Risk

Johnson & Johnson has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Johnson & Johnson’s rivals have a beta of 0.95, meaning that their average share price is 5% less volatile than the S&P 500.

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 21.28% 27.68% 13.41%
Johnson & Johnson Competitors -2,859.53% -67.82% -9.13%

Dividends

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 65.6% of their earnings in the form of a dividend. Johnson & Johnson has increased its dividend for 54 consecutive years.

Institutional & Insider Ownership

66.1% of Johnson & Johnson shares are held by institutional investors. Comparatively, 43.7% of shares of all “Pharmaceuticals” companies are held by institutional investors. 0.2% of Johnson & Johnson shares are held by insiders. Comparatively, 11.9% of shares of all “Pharmaceuticals” companies are held 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Johnson & Johnson and its rivals, 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 847 3782 6814 185 2.54

Johnson & Johnson currently has a consensus target price of $143.56, suggesting a potential upside of 2.97%. As a group, “Pharmaceuticals” companies have a potential upside of 23.30%. Given Johnson & Johnson’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Johnson & Johnson has less favorable growth aspects than its rivals.

Summary

Johnson & Johnson beats its rivals 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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