Unilever vs Johnson & Johnson Which Is More Lucrative?

Unilever and Johnson & Johnson are two prominent companies in the consumer goods industry, both known for their diverse product portfolios and global presence. Unilever, with brands like Dove and Ben & Jerry's, has shown consistent growth and innovation, while Johnson & Johnson, with products ranging from pharmaceuticals to baby care, has a strong track record of resilience and stability. Investors often compare and analyze the performance of these two stocks, weighing factors such as financials, market trends, and strategic initiatives to make informed investment decisions.

Unilever or Johnson & Johnson?

When comparing Unilever 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 Unilever 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. Unilever has a dividend yield of 4.5%, while Johnson & Johnson has a dividend yield of 3.93%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Unilever reports a 5-year dividend growth of 0.22% year and a payout ratio of 64.35%. 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 Unilever P/E ratio at 20.72 and Johnson & Johnson's P/E ratio at 25.63. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Unilever P/B ratio is 6.77 while Johnson & Johnson's P/B ratio is 5.37.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Unilever has seen a 5-year revenue growth of 0.24%, while Johnson & Johnson's is 0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Unilever's ROE at 34.58% 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 $58.16 for Unilever and $154.91 for Johnson & Johnson. Over the past year, Unilever's prices ranged from $46.46 to $65.87, with a yearly change of 41.78%. 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.