Johnson & Johnson (JNJ) vs Pfizer Inc. (PFE)

Johnson & Johnson and Pfizer Inc. are both Drug Manufacturers General companies. Johnson & Johnson is the larger, with a market value of $655.6B against $170.3B — 3.8× the size. Johnson & Johnson trades at the lower P/E: 41.3× against 42.2×. Johnson & Johnson grew revenue faster over the last twelve months: 7.80% against 1.34%. Johnson & Johnson has the higher net margin (16.2% vs 6.34%) and the higher return on invested capital (11.1% vs 6.19%). Both pay a dividend; Pfizer Inc. yields more (7.18% vs 1.94%). Across the 23 metrics below, Johnson & Johnson leads on 12 and Pfizer Inc. on 11.

Valuation

Metric JNJ PFE Drug Manufacturers General median
P/E 41.28 42.17 26.57
P/S 6.61 2.68 3.49
P/B 8.05 1.91 5.20
Price to free cash flow 31.28 15.54 21.34
EV/EBITDA 24.38 10.88 14.80
EV/Sales 6.80 3.44 4.09
Earnings yield 2.42% 2.37% 2.40%
Free cash flow yield 3.20% 6.43% 4.43%

Profitability

Metric JNJ PFE Drug Manufacturers General median
Gross margin 67.56% 73.38% 73.01%
Operating margin 19.72% 21.44% 18.34%
Net margin 16.20% 6.34% 7.31%
Free cash flow margin 21.13% 18.52% 18.52%
Return on equity 20.02% 4.42% 5.80%
Return on assets 8.25% 1.95% 2.28%
Return on invested capital 11.07% 6.19% 6.26%

Growth

Metric JNJ PFE Drug Manufacturers General median
Revenue growth (TTM) 7.80% 1.34% 6.72%
EPS growth (last fiscal year) 90.50% (3.55%) 21.81%
Revenue growth, 5-year CAGR 2.67% 8.48% 4.75%
Net income growth, 5-year CAGR 12.74% (3.23%) 0.00%

Health

Metric JNJ PFE Drug Manufacturers General median
Debt to equity 0.44 0.70 0.63
Current ratio 1.02 1.42 1.39
Net debt to EBITDA 0.46 2.46 1.15

Dividend

Metric JNJ PFE Drug Manufacturers General median
Dividend yield 1.94% 7.18% 2.31%
Payout ratio 0.80 3.05 0.59

Size

Metric JNJ PFE Drug Manufacturers General median
Market cap 655.56b 170.31b 131.21b

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