Rafael (NYSE:RFL – Get Free Report) and Johnson & Johnson (NYSE:JNJ – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
11.3% of Rafael shares are owned by institutional investors. Comparatively, 69.6% of Johnson & Johnson shares are owned by institutional investors. 32.9% of Rafael shares are owned by insiders. Comparatively, 0.2% of Johnson & Johnson shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Rafael has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Johnson & Johnson has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rafael | 1 | 0 | 0 | 0 | 1.00 |
| Johnson & Johnson | 0 | 6 | 18 | 1 | 2.80 |
Johnson & Johnson has a consensus price target of $275.87, indicating a potential upside of 6.59%. Given Johnson & Johnson’s stronger consensus rating and higher possible upside, analysts plainly believe Johnson & Johnson is more favorable than Rafael.
Profitability
This table compares Rafael and Johnson & Johnson’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rafael | -3,321.74% | -41.27% | -35.32% |
| Johnson & Johnson | 21.48% | 32.42% | 13.35% |
Valuation & Earnings
This table compares Rafael and Johnson & Johnson”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rafael | $920,000.00 | 84.78 | -$30.52 million | ($0.68) | -2.21 |
| Johnson & Johnson | $94.19 billion | 6.62 | $26.80 billion | $8.63 | 29.99 |
Johnson & Johnson has higher revenue and earnings than Rafael. Rafael is trading at a lower price-to-earnings ratio than Johnson & Johnson, indicating that it is currently the more affordable of the two stocks.
Summary
Johnson & Johnson beats Rafael on 12 of the 15 factors compared between the two stocks.
About Rafael
Rafael Holdings, Inc. primarily engages in holding interests in clinical and early-stage pharmaceutical companies, and commercial real estate assets in the United States and Israel. It operates in two segments, Healthcare and Real Estate. The company engages in the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells. Its lead drug candidate is CPI-613 (devimistat), currently under Phase III clinical study for the treatment of metastatic pancreatic cancer and acute myeloid leukemia. The company is also involved in developing Promitil, a molecule designed for the targeted delivery of mitomycin-C in a proprietary prodrug form, completed Phase 1B clinical studies; Folate-targeted Promitil (Promi-Fol) which is aimed at local treatment (intravesical) of superficial bladder cancer; and Promi-Dox, a highly potent dual drug liposome with MLP and doxorubicin targeting a potential basket of tumors. In addition, it engages in the development of surgical and procedural devices, including orthopedic arthroscopy instrumentation. Rafael Holdings, Inc. was incorporated in 2017 and is headquartered in Newark, New Jersey.
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.
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