Amgen vs Johnson & Johnson Which Is Superior?

Amgen and Johnson & Johnson are two of the biggest players in the pharmaceutical industry, with both companies holding significant market share and a strong track record of success. While both companies have seen steady growth in their stocks over the years, there are key differences in their investment potential. Amgen is known for its focus on biotechnology and innovation, while Johnson & Johnson has a more diverse portfolio that includes consumer healthcare products. Investors should carefully consider the strengths and weaknesses of both companies before making any investment decisions.

Amgen or Johnson & Johnson?

When comparing Amgen and Johnson & Johnson, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Amgen and Johnson & Johnson.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Amgen has a dividend yield of 3.28%, while Johnson & Johnson has a dividend yield of 3.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amgen reports a 5-year dividend growth of 10.04% year and a payout ratio of 112.70%. On the other hand, Johnson & Johnson reports a 5-year dividend growth of 5.83% year and a payout ratio of 79.71%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Amgen P/E ratio at 34.79 and Johnson & Johnson's P/E ratio at 23.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amgen P/B ratio is 19.55 while Johnson & Johnson's P/B ratio is 5.02.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amgen has seen a 5-year revenue growth of 0.47%, while Johnson & Johnson's is 0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amgen's ROE at 68.49% and Johnson & Johnson's ROE at 20.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $272.15 for Amgen and $146.02 for Johnson & Johnson. Over the past year, Amgen's prices ranged from $257.80 to $346.85, with a yearly change of 34.54%. Johnson & Johnson's prices fluctuated between $143.13 and $168.85, with a yearly change of 17.97%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.