AstraZeneca vs Johnson & Johnson Which Is Stronger?

AstraZeneca and Johnson & Johnson are two pharmaceutical companies that have been at the forefront of the global fight against COVID-19. Both companies have developed highly effective vaccines that have been distributed worldwide. However, their stocks have experienced some fluctuations due to factors such as vaccine efficacy, distribution issues, and regulatory scrutiny. Investors are closely monitoring the performance of these stocks as they play a critical role in the ongoing battle against the pandemic.

AstraZeneca or Johnson & Johnson?

When comparing AstraZeneca 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 AstraZeneca 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. AstraZeneca has a dividend yield of 2.2%, 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. AstraZeneca reports a 5-year dividend growth of 0.42% year and a payout ratio of 71.25%. 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 AstraZeneca P/E ratio at 31.95 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. AstraZeneca P/B ratio is 5.10 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, AstraZeneca has seen a 5-year revenue growth of 0.70%, while Johnson & Johnson's is 0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AstraZeneca's ROE at 16.57% 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 $66.92 for AstraZeneca and $146.02 for Johnson & Johnson. Over the past year, AstraZeneca's prices ranged from $60.47 to $87.68, with a yearly change of 45.00%. 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.