Smith & Nephew vs Johnson & Johnson

Smith & Nephew and Johnson & Johnson are two well-known companies in the healthcare industry. Both companies have a strong presence in the medical equipment and supplies sector, with a focus on orthopedic products. Smith & Nephew is known for its innovative medical devices, while Johnson & Johnson is a diversified healthcare company with a wide range of products. Investors often compare the stock performance of these two companies, evaluating factors such as financial stability, growth potential, and market share.

Smith & Nephew or Johnson & Johnson?

When comparing Smith & Nephew 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 Smith & Nephew 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. Smith & Nephew has a dividend yield of 2.63%, while Johnson & Johnson has a dividend yield of 3.72%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Smith & Nephew reports a 5-year dividend growth of 0.43% year and a payout ratio of 106.94%. On the other hand, Johnson & Johnson reports a 5-year dividend growth of 5.83% year and a payout ratio of 30.49%.

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 Smith & Nephew P/E ratio at 81.73 and Johnson & Johnson's P/E ratio at 10.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Smith & Nephew P/B ratio is 4.78 while Johnson & Johnson's P/B ratio is 5.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Smith & Nephew has seen a 5-year revenue growth of 1.28%, while Johnson & Johnson's is 0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Smith & Nephew's ROE at 5.84% and Johnson & Johnson's ROE at 54.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.26 for Smith & Nephew and $159.00 for Johnson & Johnson. Over the past year, Smith & Nephew's prices ranged from $21.53 to $31.72, with a yearly change of 47.33%. 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.