Comprehensive Stock Comparison
Compare AstraZeneca PLC (AZN) vs Johnson & Johnson (JNJ) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AZN | 8.6% revenue growth vs JNJ's 4.3% |
| Value | AZN | Lower P/E (20.3x vs 21.5x), PEG 0.93 vs 38.22 |
| Quality / Margins | JNJ | 27.3% net margin vs AZN's 17.4% |
| Stability / Safety | JNJ | Beta 0.06 vs AZN's 0.27, lower leverage |
| Dividends | JNJ | 2.0% yield, 36-year raise streak, vs AZN's 0.8% |
| Momentum (1Y) | JNJ | +53.7% vs AZN's +40.3% |
| Efficiency (ROA) | JNJ | 13.0% ROA vs AZN's 9.0%, ROIC 20.7% vs 14.9% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
AstraZeneca is a global biopharmaceutical company that discovers, develops, manufactures, and commercializes prescription medicines across multiple therapeutic areas. It generates revenue primarily from oncology drugs (~40% of total revenue), cardiovascular/renal/metabolism treatments (~30%), and respiratory/immunology products, with the remainder from rare diseases and vaccines. The company's competitive advantage lies in its robust R&D pipeline—particularly in oncology and biologics—and its global commercial infrastructure that spans both developed and emerging markets.
Johnson & Johnson is a global healthcare company focused on innovative medicines and medical technology. It generates revenue primarily from its Innovative Medicine segment — prescription drugs for complex diseases like cancer and autoimmune disorders — and its MedTech segment — medical devices including orthopedics, surgery tools, and contact lenses. The company's competitive advantage lies in its massive R&D scale, deep scientific expertise, and diversified portfolio of patented pharmaceuticals and medical devices.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
JNJ leads in 5 of 6 categories (Financial Metrics, Profitability & Efficiency). AZN leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
JNJ is the larger business by revenue, generating $92.1B annually — 1.6x AZN's $58.7B. JNJ is the more profitable business, keeping 27.3% of every revenue dollar as net income compared to AZN's 17.4%.
| Metric | AZNAstraZeneca PLC | JNJJohnson & Johnson |
|---|---|---|
| RevenueTrailing 12 months | $58.7B | $92.1B |
| EBITDAEarnings before interest/tax | $19.5B | $31.4B |
| Net IncomeAfter-tax profit | $10.2B | $25.1B |
| Free Cash FlowCash after capex | $10.5B | $19.1B |
| Gross MarginGross profit ÷ Revenue | +81.9% | +68.1% |
| Operating MarginEBIT ÷ Revenue | +23.4% | +26.1% |
| Net MarginNet income ÷ Revenue | +17.4% | +27.3% |
| FCF MarginFCF ÷ Revenue | +17.9% | +20.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.1% | +6.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +54.2% | +91.0% |
Valuation Metrics
At 42.9x trailing earnings, JNJ trades at a 33% valuation discount to AZN's 63.7x P/E. Adjusting for growth (PEG ratio), AZN offers better value at 2.92x vs JNJ's 38.22x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | AZNAstraZeneca PLC | JNJJohnson & Johnson |
|---|---|---|
| Market CapShares × price | $323.2B | $598.7B |
| Enterprise ValueMkt cap + debt − cash | $347.1B | $611.2B |
| Trailing P/EPrice ÷ TTM EPS | 63.75x | 42.91x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.30x | 21.48x |
| PEG RatioP/E ÷ EPS growth rate | 2.92x | 38.22x |
| EV / EBITDAEnterprise value multiple | 17.82x | 20.73x |
| Price / SalesMarket cap ÷ Revenue | 5.50x | 6.74x |
| Price / BookPrice ÷ Book value/share | 13.37x | 8.44x |
| Price / FCFMarket cap ÷ FCF | 27.47x | 30.17x |
Profitability & Efficiency
JNJ delivers a 31.7% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $21 for AZN. JNJ carries lower financial leverage with a 0.51x debt-to-equity ratio, signaling a more conservative balance sheet compared to AZN's 0.61x. On the Piotroski fundamental quality scale (0–9), AZN scores 8/9 vs JNJ's 5/9, reflecting strong financial health.
| Metric | AZNAstraZeneca PLC | JNJJohnson & Johnson |
|---|---|---|
| ROE (TTM)Return on equity | +21.0% | +31.7% |
| ROA (TTM)Return on assets | +9.0% | +13.0% |
| ROICReturn on invested capital | +14.9% | +20.7% |
| ROCEReturn on capital employed | +17.2% | +17.6% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 5 |
| Debt / EquityFinancial leverage | 0.61x | 0.51x |
| Net DebtTotal debt minus cash | $24.0B | $12.5B |
| Cash & Equiv.Liquid assets | $5.7B | $24.1B |
| Total DebtShort + long-term debt | $29.7B | $36.6B |
| Interest CoverageEBIT ÷ Interest expense | 8.32x | 48.23x |
Total Returns (with DRIP)
A $10,000 investment in AZN five years ago would be worth $22,160 today (with dividends reinvested), compared to $17,079 for JNJ. Over the past 12 months, JNJ leads with a +53.7% total return vs AZN's +40.3%. The 3-year compound annual growth rate (CAGR) favors JNJ at 19.8% vs AZN's 18.3% — a key indicator of consistent wealth creation.
| Metric | AZNAstraZeneca PLC | JNJJohnson & Johnson |
|---|---|---|
| YTD ReturnYear-to-date | +15.3% | +20.4% |
| 1-Year ReturnPast 12 months | +40.3% | +53.7% |
| 3-Year ReturnCumulative with dividends | +65.7% | +71.8% |
| 5-Year ReturnCumulative with dividends | +121.6% | +70.8% |
| 10-Year ReturnCumulative with dividends | +296.2% | +175.7% |
| CAGR (3Y)Annualised 3-year return | +18.3% | +19.8% |
Risk & Volatility
JNJ is the less volatile stock with a 0.06 beta — it tends to amplify market swings less than AZN's 0.27 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | AZNAstraZeneca PLC | JNJJohnson & Johnson |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.27x | 0.06x |
| 52-Week HighHighest price in past year | $212.71 | $248.93 |
| 52-Week LowLowest price in past year | $91.44 | $141.50 |
| % of 52W HighCurrent price vs 52-week peak | +98.0% | +99.8% |
| RSI (14)Momentum oscillator 0–100 | 59.1 | 66.2 |
| Avg Volume (50D)Average daily shares traded | 1.5M | 7.1M |
Analyst Outlook
Wall Street rates AZN as "Buy" and JNJ as "Buy". Consensus price targets imply -7.7% upside for JNJ (target: $229) vs -49.4% for AZN (target: $106). For income investors, JNJ offers the higher dividend yield at 1.96% vs AZN's 0.78%.
| Metric | AZNAstraZeneca PLC | JNJJohnson & Johnson |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $105.50 | $229.33 |
| # AnalystsCovering analysts | 41 | 39 |
| Dividend YieldAnnual dividend ÷ price | +0.8% | +2.0% |
| Dividend StreakConsecutive years of raises | 4 | 36 |
| Dividend / ShareAnnual DPS | $1.63 | $4.87 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +0.4% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| AstraZeneca PLC (AZN) | 100 | 207.5 | +107.5% |
| Johnson & Johnson (JNJ) | 100 | 164.8 | +64.8% |
AstraZeneca PLC (AZN) returned +122% over 5 years vs Johnson & Johnson (JNJ)'s +71%. A $10,000 investment in AZN 5 years ago would be worth $22,160 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| AstraZeneca PLC (AZN) | $23.0B | $58.7B | +155.4% |
| Johnson & Johnson (JNJ) | $71.9B | $88.8B | +23.6% |
AstraZeneca PLC's revenue grew from $23.0B (2016) to $58.7B (2025) — a 11.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| AstraZeneca PLC (AZN) | 15.2% | 17.5% | +14.8% |
| Johnson & Johnson (JNJ) | 23.0% | 15.8% | -31.2% |
AstraZeneca PLC's net margin went from 15% (2016) to 17% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| AstraZeneca PLC (AZN) | 54.3 | 53.7 | -1.1% |
| Johnson & Johnson (JNJ) | 297.3 | 25 | -91.6% |
AstraZeneca PLC has traded in a 54x–194x P/E range over 8 years; current trailing P/E is ~64x. Johnson & Johnson has traded in a 11x–297x P/E range over 8 years; current trailing P/E is ~43x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| AstraZeneca PLC (AZN) | 1.38 | 3.27 | +137.0% |
| Johnson & Johnson (JNJ) | 5.93 | 5.79 | -2.4% |
AstraZeneca PLC's EPS grew from $1.38 (2016) to $3.27 (2025) — a 10% CAGR.
Chart 6Free Cash Flow — 5 Years
AstraZeneca PLC generated $12B FCF in 2025 (+213% vs 2021). Johnson & Johnson generated $20B FCF in 2024 (+0% vs 2021).
AZN vs JNJ: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is AZN or JNJ a better buy right now?
Johnson & Johnson (JNJ) offers the better valuation at 42.9x trailing P/E (21.5x forward), making it the more compelling value choice. Analysts rate AstraZeneca PLC (AZN) a "Buy" — based on 41 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — AZN or JNJ?
On trailing P/E, Johnson & Johnson (JNJ) is the cheapest at 42.9x versus AstraZeneca PLC at 63.7x. On forward P/E, AstraZeneca PLC is actually cheaper at 20.3x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: AstraZeneca PLC wins at 0.93x versus Johnson & Johnson's 38.22x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — AZN or JNJ?
Over the past 5 years, AstraZeneca PLC (AZN) delivered a total return of +121.6%, compared to +70.8% for Johnson & Johnson (JNJ). A $10,000 investment in AZN five years ago would be worth approximately $22K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AZN returned +296.2% versus JNJ's +175.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — AZN or JNJ?
By beta (market sensitivity over 5 years), Johnson & Johnson (JNJ) is the lower-risk stock at 0.06β versus AstraZeneca PLC's 0.27β — meaning AZN is approximately 377% more volatile than JNJ relative to the S&P 500. On balance sheet safety, Johnson & Johnson (JNJ) carries a lower debt/equity ratio of 51% versus 61% for AstraZeneca PLC — giving it more financial flexibility in a downturn.
05Which has better profit margins — AZN or JNJ?
AstraZeneca PLC (AZN) is the more profitable company, earning 17.5% net margin versus 15.8% for Johnson & Johnson — meaning it keeps 17.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: JNJ leads at 24.9% versus 23.4% for AZN. At the gross margin level — before operating expenses — AZN leads at 81.9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is AZN or JNJ more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, AstraZeneca PLC (AZN) is the more undervalued stock at a PEG of 0.93x versus Johnson & Johnson's 38.22x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, AstraZeneca PLC (AZN) trades at 20.3x forward P/E versus 21.5x for Johnson & Johnson — 1.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for JNJ: -7.7% to $229.33.
07Which pays a better dividend — AZN or JNJ?
All stocks in this comparison pay dividends. Johnson & Johnson (JNJ) offers the highest yield at 2.0%, versus 0.8% for AstraZeneca PLC (AZN).
08Is AZN or JNJ better for a retirement portfolio?
For long-horizon retirement investors, Johnson & Johnson (JNJ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.06), 2.0% yield, +175.7% 10Y return). Both have compounded well over 10 years (JNJ: +175.7%, AZN: +296.2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between AZN and JNJ?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.