Johnson & Johnson vs Pfizer Which Is More Reliable?

Johnson & Johnson and Pfizer are two major pharmaceutical companies with significant influence in the healthcare sector. Both companies have a long history of success and innovation in developing and manufacturing drugs, vaccines, and healthcare products. Investors often compare the performance of Johnson & Johnson and Pfizer stocks as they navigate through market fluctuations and industry changes. Understanding the financial performance, product pipelines, and market presence of these two companies can provide valuable insights for investors looking to make informed decisions in the healthcare sector.

Johnson & Johnson or Pfizer?

When comparing Johnson & Johnson and Pfizer, 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 Pfizer.

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 Pfizer has a dividend yield of 6.4%. 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, Pfizer reports a 5-year dividend growth of 4.08% year and a payout ratio of 221.76%.

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 Pfizer's P/E ratio at 34.91. 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 Pfizer's P/B ratio is 1.61.

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 Pfizer's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Johnson & Johnson's ROE at 20.94% and Pfizer's ROE at 4.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $154.91 for Johnson & Johnson and $26.22 for Pfizer. Over the past year, Johnson & Johnson's prices ranged from $143.13 to $168.85, with a yearly change of 17.97%. Pfizer's prices fluctuated between $25.20 and $31.54, with a yearly change of 25.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.