JNJ vs. LLY, MRK, ABBV, PFE, BMY, ZTS, RPRX, JAZZ, PRGO, and CORT
Should you be buying Johnson & Johnson stock or one of its competitors? The main competitors of Johnson & Johnson include Eli Lilly and Company (LLY), Merck & Co., Inc. (MRK), AbbVie (ABBV), Pfizer (PFE), Bristol-Myers Squibb (BMY), Zoetis (ZTS), Royalty Pharma (RPRX), Jazz Pharmaceuticals (JAZZ), Perrigo (PRGO), and Corcept Therapeutics (CORT). These companies are all part of the "pharmaceuticals" industry.
Eli Lilly and Company (NYSE:LLY) and Johnson & Johnson (NYSE:JNJ) are both large-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, media sentiment, dividends, profitability, valuation, earnings, community ranking, risk and institutional ownership.
Eli Lilly and Company has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Johnson & Johnson has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.
Johnson & Johnson has higher revenue and earnings than Eli Lilly and Company. Johnson & Johnson is trading at a lower price-to-earnings ratio than Eli Lilly and Company, indicating that it is currently the more affordable of the two stocks.
Eli Lilly and Company pays an annual dividend of $5.20 per share and has a dividend yield of 0.6%. Johnson & Johnson pays an annual dividend of $4.96 per share and has a dividend yield of 3.4%. Eli Lilly and Company pays out 76.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Johnson & Johnson pays out 30.9% of its earnings in the form of a dividend. Eli Lilly and Company has raised its dividend for 10 consecutive years and Johnson & Johnson has raised its dividend for 63 consecutive years. Johnson & Johnson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
82.5% of Eli Lilly and Company shares are held by institutional investors. Comparatively, 69.6% of Johnson & Johnson shares are held by institutional investors. 0.1% of Eli Lilly and Company shares are held by company insiders. Comparatively, 0.2% of Johnson & Johnson shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
In the previous week, Eli Lilly and Company had 24 more articles in the media than Johnson & Johnson. MarketBeat recorded 53 mentions for Eli Lilly and Company and 29 mentions for Johnson & Johnson. Eli Lilly and Company's average media sentiment score of 0.71 beat Johnson & Johnson's score of 0.63 indicating that Johnson & Johnson is being referred to more favorably in the news media.
Eli Lilly and Company received 88 more outperform votes than Johnson & Johnson when rated by MarketBeat users. Likewise, 70.09% of users gave Eli Lilly and Company an outperform vote while only 64.95% of users gave Johnson & Johnson an outperform vote.
Johnson & Johnson has a net margin of 45.26% compared to Johnson & Johnson's net margin of 17.08%. Johnson & Johnson's return on equity of 56.98% beat Eli Lilly and Company's return on equity.
Eli Lilly and Company currently has a consensus price target of $787.53, indicating a potential downside of 7.35%. Johnson & Johnson has a consensus price target of $174.07, indicating a potential upside of 18.35%. Given Eli Lilly and Company's higher possible upside, analysts clearly believe Johnson & Johnson is more favorable than Eli Lilly and Company.
Summary
Johnson & Johnson beats Eli Lilly and Company on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding JNJ and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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