Gilead Sciences, Inc. (GILD) vs Johnson & Johnson (JNJ)

Gilead Sciences, Inc. and Johnson & Johnson are both Drug Manufacturers General companies. Johnson & Johnson is the larger, with a market value of $652.8B against $183.2B — 3.6× the size. Gilead Sciences, Inc. has negative trailing earnings, so its P/E is not meaningful; Johnson & Johnson trades at 31.4×. Johnson & Johnson grew revenue faster over the last twelve months: 8.06% against 5.52%. Johnson & Johnson has the higher net margin (21.5% vs −10.6%) and the higher return on invested capital (15.5% vs −4.48%). Both pay a dividend; Gilead Sciences, Inc. yields more (4.27% vs 3.07%). Across the 22 metrics below, Johnson & Johnson leads on 12 and Gilead Sciences, Inc. on 10.

Valuation

Metric GILD JNJ Drug Manufacturers General median
P/E n/m 31.43 24.72
P/S 6.16 6.67 3.35
P/B 15.97 7.68 5.00
Price to free cash flow 14.49 28.73 17.68
EV/EBITDA 804.10 19.20 13.91
EV/Sales 6.92 6.84 3.95
Earnings yield (1.72%) 3.18% 2.92%
Free cash flow yield 6.90% 3.48% 4.42%

Profitability

Metric GILD JNJ Drug Manufacturers General median
Gross margin 79.59% 67.91% 72.77%
Operating margin (8.20%) 27.69% 18.90%
Net margin (10.64%) 21.48% 8.27%
Free cash flow margin 42.50% 23.20% 17.25%
Return on equity (20.68%) 25.74% 6.97%
Return on assets (6.17%) 10.67% 2.76%
Return on invested capital (4.48%) 15.51% 6.30%

Growth

Metric GILD JNJ Drug Manufacturers General median
Revenue growth (TTM) 5.52% 8.06% 6.79%
EPS growth (last fiscal year) 1,684.21% 90.50% —
Revenue growth, 5-year CAGR 3.58% 2.67% 3.98%
Net income growth, 5-year CAGR 133.35% 12.74% 0.42%

Health

Metric GILD JNJ Drug Manufacturers General median
Debt to equity 2.23 0.44 0.63
Current ratio 1.27 1.09 1.32
Net debt to EBITDA 1.35 0.46 1.15

Dividend

Metric GILD JNJ Drug Manufacturers General median
Dividend yield 4.27% 3.07% 3.57%
Payout ratio 0.68 0.93 0.53

Size

Metric GILD JNJ Drug Manufacturers General median
Market cap 183.22b 652.82b 125.91b

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