Johnson & Johnson vs Kenvue Which Outperforms?

Johnson & Johnson and Kenvue are two well-known companies in the healthcare industry that have attracted the attention of investors. Johnson & Johnson is a global pharmaceutical and consumer goods company with a long history of success, while Kenvue is a newer biotechnology company with promising growth potential. Both companies operate in different sectors of the healthcare industry, making them interesting options for investors looking to diversify their portfolio. In this comparison, we will delve deeper into the stocks of Johnson & Johnson and Kenvue to analyze their performance and potential for investors.

Johnson & Johnson or Kenvue?

When comparing Johnson & Johnson and Kenvue, 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 Kenvue.

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 3.35%, while Kenvue has a dividend yield of 3.65%. 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, Kenvue reports a 5-year dividend growth of 0.00% year and a payout ratio of 144.92%.

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 24.04 and Kenvue's P/E ratio at 39.99. 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 5.03 while Kenvue's P/B ratio is 4.00.

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 Kenvue's is 0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Johnson & Johnson's ROE at 20.94% and Kenvue's ROE at 9.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $146.40 for Johnson & Johnson and $22.19 for Kenvue. Over the past year, Johnson & Johnson's prices ranged from $143.13 to $168.85, with a yearly change of 17.97%. Kenvue's prices fluctuated between $17.67 and $24.46, with a yearly change of 38.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.