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 $610.4B against $167.8B — 3.6× the size. Johnson & Johnson trades at the lower P/E: 29.6× against 38.9×. Johnson & Johnson grew revenue faster over the last twelve months: 7.80% against −0.21%. Johnson & Johnson has the higher net margin (16.2% vs 6.80%) and the lower return on invested capital (0.00% vs 6.30%). Both pay a dividend; Pfizer Inc. yields more (5.81% vs 2.07%). Across the 23 metrics below, Pfizer Inc. leads on 15 and Johnson & Johnson on 8.

Valuation

Metric JNJ PFE Drug Manufacturers General median
P/E 29.61 38.92 24.54
P/S 6.19 2.65 3.39
P/B 7.24 1.97 5.00
Price to free cash flow 27.07 16.55 16.55
EV/EBITDA 18.12 10.79 13.82
EV/Sales 6.36 3.46 4.03
Earnings yield 3.38% 2.57% 2.98%
Free cash flow yield 3.69% 6.04% 4.46%

Profitability

Metric JNJ PFE Drug Manufacturers General median
Gross margin 67.56% 73.18% 72.77%
Operating margin 19.29% 21.70% 18.77%
Net margin 16.20% 6.80% 8.27%
Free cash flow margin 0.00% 17.25% 17.18%
Return on equity 0.00% 4.97% 5.87%
Return on assets 0.00% 2.13% 2.57%
Return on invested capital 0.00% 6.30% 6.11%

Growth

Metric JNJ PFE Drug Manufacturers General median
Revenue growth (TTM) 7.80% (0.21%) 6.66%
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 0.74 0.63
Current ratio 1.09 1.27 1.32
Net debt to EBITDA 0.46 2.46 1.15

Dividend

Metric JNJ PFE Drug Manufacturers General median
Dividend yield 2.07% 5.81% 2.33%
Payout ratio 0.80 2.26 0.59

Size

Metric JNJ PFE Drug Manufacturers General median
Market cap 610.38b 167.80b 123.73b

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