Johnson & Johnson (NYSE:JNJ – Get Free Report) is one of 896 public companies in the “Pharmaceuticals” industry, but how does it compare to its competitors? We will compare Johnson & Johnson to similar businesses based on the strength of its valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations for Johnson & Johnson and its competitors, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Johnson & Johnson | 0 | 8 | 17 | 1 | 2.73 |
| Johnson & Johnson Competitors | 7792 | 13886 | 25777 | 1037 | 2.41 |
Johnson & Johnson presently has a consensus price target of $275.92, suggesting a potential downside of 0.08%. As a group, “Pharmaceuticals” companies have a potential upside of 25.94%. Given Johnson & Johnson’s competitors higher possible upside, analysts plainly believe Johnson & Johnson has less favorable growth aspects than its competitors.
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 | -2,372.59% | -220.82% | -15.99% |
Insider & Institutional Ownership
69.6% of Johnson & Johnson shares are held by institutional investors. Comparatively, 32.5% of shares of all “Pharmaceuticals” companies are held by institutional investors. 0.2% of Johnson & Johnson shares are held by company insiders. Comparatively, 14.2% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Johnson & Johnson and its competitors revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Johnson & Johnson | $94.19 billion | $26.80 billion | 41.84 |
| Johnson & Johnson Competitors | $3.54 billion | $3.17 billion | 554.50 |
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.
Volatility and Risk
Johnson & Johnson has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, Johnson & Johnson’s competitors have a beta of -4.05, suggesting that their average stock price is 505% less volatile than the S&P 500.
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 3.3% and pay out 48.0% 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.
Summary
Johnson & Johnson beats its competitors 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.
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