Johnson & Johnson vs Eli Lilly Which Is More Profitable?

Johnson & Johnson and Eli Lilly are two pharmaceutical giants that have been competing in the stock market for years. Both companies have a strong track record of innovation and success in the healthcare industry, which has fueled investor interest in their stocks. Johnson & Johnson is known for its diverse portfolio of products and commitment to research and development, while Eli Lilly has a focus on pharmaceuticals and biotechnology. Investors are constantly weighing the strengths and weaknesses of each company to determine which stock offers the best potential for growth and profitability.

Johnson & Johnson or Eli Lilly?

When comparing Johnson & Johnson and Eli Lilly, 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 Johnson & Johnson and Eli Lilly.

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. Johnson & Johnson has a dividend yield of 3.93%, while Eli Lilly has a dividend yield of 0.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Johnson & Johnson reports a 5-year dividend growth of 5.83% year and a payout ratio of 79.71%. On the other hand, Eli Lilly reports a 5-year dividend growth of 14.97% year and a payout ratio of 54.12%.

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 Johnson & Johnson P/E ratio at 25.63 and Eli Lilly's P/E ratio at 89.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Johnson & Johnson P/B ratio is 5.37 while Eli Lilly's P/B ratio is 52.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Johnson & Johnson has seen a 5-year revenue growth of 0.10%, while Eli Lilly's is 0.81%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Johnson & Johnson's ROE at 20.94% and Eli Lilly's ROE at 65.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $154.91 for Johnson & Johnson and $824.62 for Eli Lilly. Over the past year, Johnson & Johnson's prices ranged from $143.13 to $168.85, with a yearly change of 17.97%. Eli Lilly's prices fluctuated between $561.65 and $972.53, with a yearly change of 73.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.