Comprehensive Stock Comparison
Compare Gilead Sciences, Inc. (GILD) vs Johnson & Johnson (JNJ) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | GILD | 6.0% revenue growth vs JNJ's 4.3% |
| Value | GILD | Lower P/E (17.1x vs 21.5x) |
| Quality / Margins | GILD | 28.9% net margin vs JNJ's 27.3% |
| Stability / Safety | JNJ | Beta 0.06 vs GILD's 0.38, lower leverage |
| Dividends | GILD | 2.1% yield, 10-year raise streak, vs JNJ's 2.0% |
| Momentum (1Y) | JNJ | +53.7% vs GILD's +33.1% |
| Efficiency (ROA) | GILD | 14.4% ROA vs JNJ's 13.0%, ROIC 3.2% vs 20.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Gilead Sciences is a biopharmaceutical company focused on developing and commercializing medicines for serious diseases like HIV, viral hepatitis, and cancer. It generates revenue primarily from antiviral drugs — especially HIV treatments like Biktarvy which drive the majority of sales — along with oncology therapies and COVID-19 treatment Veklury. The company's moat lies in its deep expertise in antiviral drug development, a robust HIV franchise with high patient retention, and a pipeline of cell therapy and oncology assets.
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
GILD leads in 2 of 6 categories (Financial Metrics, Total Returns). JNJ leads in 2 (Profitability & Efficiency, Risk & Volatility). 2 tied.
Financial Metrics (TTM)
JNJ is the larger business by revenue, generating $92.1B annually — 3.1x GILD's $29.4B. Profitability is closely matched — net margins range from 28.9% (GILD) to 27.3% (JNJ).
| Metric | GILDGilead Sciences, … | JNJJohnson & Johnson |
|---|---|---|
| RevenueTrailing 12 months | $29.4B | $92.1B |
| EBITDAEarnings before interest/tax | $12.4B | $31.4B |
| Net IncomeAfter-tax profit | $8.5B | $25.1B |
| Free Cash FlowCash after capex | $9.7B | $19.1B |
| Gross MarginGross profit ÷ Revenue | +80.8% | +68.1% |
| Operating MarginEBIT ÷ Revenue | +37.4% | +26.1% |
| Net MarginNet income ÷ Revenue | +28.9% | +27.3% |
| FCF MarginFCF ÷ Revenue | +32.8% | +20.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.7% | +6.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +22.5% | +91.0% |
Valuation Metrics
At 42.9x trailing earnings, JNJ trades at a 89% valuation discount to GILD's 392.0x P/E. On an enterprise value basis, JNJ's 20.7x EV/EBITDA is more attractive than GILD's 45.7x.
| Metric | GILDGilead Sciences, … | JNJJohnson & Johnson |
|---|---|---|
| Market CapShares × price | $185.6B | $598.7B |
| Enterprise ValueMkt cap + debt − cash | $202.3B | $611.2B |
| Trailing P/EPrice ÷ TTM EPS | 391.97x | 42.91x |
| Forward P/EPrice ÷ next-FY EPS est. | 17.13x | 21.48x |
| PEG RatioP/E ÷ EPS growth rate | — | 38.22x |
| EV / EBITDAEnterprise value multiple | 45.68x | 20.73x |
| Price / SalesMarket cap ÷ Revenue | 6.45x | 6.74x |
| Price / BookPrice ÷ Book value/share | 9.71x | 8.44x |
| Price / FCFMarket cap ÷ FCF | 18.01x | 30.17x |
Profitability & Efficiency
GILD delivers a 37.6% return on equity — every $100 of shareholder capital generates $38 in annual profit, vs $32 for JNJ. JNJ carries lower financial leverage with a 0.51x debt-to-equity ratio, signaling a more conservative balance sheet compared to GILD's 1.39x. On the Piotroski fundamental quality scale (0–9), GILD scores 7/9 vs JNJ's 5/9, reflecting strong financial health.
| Metric | GILDGilead Sciences, … | JNJJohnson & Johnson |
|---|---|---|
| ROE (TTM)Return on equity | +37.6% | +31.7% |
| ROA (TTM)Return on assets | +14.4% | +13.0% |
| ROICReturn on invested capital | +3.2% | +20.7% |
| ROCEReturn on capital employed | +3.4% | +17.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | 1.39x | 0.51x |
| Net DebtTotal debt minus cash | $16.7B | $12.5B |
| Cash & Equiv.Liquid assets | $10.0B | $24.1B |
| Total DebtShort + long-term debt | $26.7B | $36.6B |
| Interest CoverageEBIT ÷ Interest expense | 10.56x | 48.23x |
Total Returns (with DRIP)
A $10,000 investment in GILD five years ago would be worth $26,249 today (with dividends reinvested), compared to $17,079 for JNJ. Over the past 12 months, JNJ leads with a +53.7% total return vs GILD's +33.1%. The 3-year compound annual growth rate (CAGR) favors GILD at 25.2% vs JNJ's 19.8% — a key indicator of consistent wealth creation.
| Metric | GILDGilead Sciences, … | JNJJohnson & Johnson |
|---|---|---|
| YTD ReturnYear-to-date | +22.5% | +20.4% |
| 1-Year ReturnPast 12 months | +33.1% | +53.7% |
| 3-Year ReturnCumulative with dividends | +96.4% | +71.8% |
| 5-Year ReturnCumulative with dividends | +162.5% | +70.8% |
| 10-Year ReturnCumulative with dividends | +101.0% | +175.7% |
| CAGR (3Y)Annualised 3-year return | +25.2% | +19.8% |
Risk & Volatility
JNJ is the less volatile stock with a 0.06 beta — it tends to amplify market swings less than GILD's 0.38 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. JNJ currently trades 99.8% from its 52-week high vs GILD's 94.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | GILDGilead Sciences, … | JNJJohnson & Johnson |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.38x | 0.06x |
| 52-Week HighHighest price in past year | $157.29 | $248.93 |
| 52-Week LowLowest price in past year | $93.37 | $141.50 |
| % of 52W HighCurrent price vs 52-week peak | +94.7% | +99.8% |
| RSI (14)Momentum oscillator 0–100 | 48.8 | 66.2 |
| Avg Volume (50D)Average daily shares traded | 6.2M | 7.1M |
Analyst Outlook
Wall Street rates GILD as "Buy" and JNJ as "Buy". Consensus price targets imply 5.7% upside for GILD (target: $157) vs -7.7% for JNJ (target: $229). For income investors, GILD offers the higher dividend yield at 2.10% vs JNJ's 1.96%.
| Metric | GILDGilead Sciences, … | JNJJohnson & Johnson |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $157.38 | $229.33 |
| # AnalystsCovering analysts | 58 | 39 |
| Dividend YieldAnnual dividend ÷ price | +2.1% | +2.0% |
| Dividend StreakConsecutive years of raises | 10 | 36 |
| Dividend / ShareAnnual DPS | $3.12 | $4.87 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.6% | +0.4% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Gilead Sciences, In… (GILD) | 100 | 189.51 | +89.5% |
| Johnson & Johnson (JNJ) | 100 | 164.8 | +64.8% |
Gilead Sciences, In… (GILD) returned +162% over 5 years vs Johnson & Johnson (JNJ)'s +71%. A $10,000 investment in GILD 5 years ago would be worth $26,249 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Gilead Sciences, In… (GILD) | $32.6B | $28.8B | -11.9% |
| Johnson & Johnson (JNJ) | $70.1B | $88.8B | +26.8% |
Gilead Sciences, Inc.'s revenue grew from $32.6B (2015) to $28.8B (2024) — a -1.4% CAGR. Johnson & Johnson's revenue grew from $70.1B (2015) to $88.8B (2024) — a 2.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Gilead Sciences, In… (GILD) | 55.5% | 1.7% | -97.0% |
| Johnson & Johnson (JNJ) | 22.0% | 15.8% | -28.0% |
Gilead Sciences, Inc.'s net margin went from 55% (2015) to 2% (2024). Johnson & Johnson's net margin went from 22% (2015) to 16% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Gilead Sciences, In… (GILD) | 20.4 | 243.1 | +1091.7% |
| Johnson & Johnson (JNJ) | 297.3 | 25 | -91.6% |
Gilead Sciences, Inc. has traded in a 15x–243x P/E range over 7 years; current trailing P/E is ~392x. 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 | 2015 | 2024 | Change |
|---|---|---|---|
| Gilead Sciences, In… (GILD) | 11.91 | 0.38 | -96.8% |
| Johnson & Johnson (JNJ) | 5.48 | 5.79 | +5.7% |
Gilead Sciences, Inc.'s EPS grew from $11.91 (2015) to $0.38 (2024) — a -32% CAGR. Johnson & Johnson's EPS grew from $5.48 (2015) to $5.79 (2024) — a 1% CAGR.
Chart 6Free Cash Flow — 5 Years
Gilead Sciences, Inc. generated $10B FCF in 2024 (-5% vs 2021). Johnson & Johnson generated $20B FCF in 2024 (+0% vs 2021).
GILD vs JNJ: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is GILD 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 Gilead Sciences, Inc. (GILD) a "Buy" — based on 58 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 — GILD or JNJ?
On trailing P/E, Johnson & Johnson (JNJ) is the cheapest at 42.9x versus Gilead Sciences, Inc. at 392.0x. On forward P/E, Gilead Sciences, Inc. is actually cheaper at 17.1x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — GILD or JNJ?
Over the past 5 years, Gilead Sciences, Inc. (GILD) delivered a total return of +162.5%, compared to +70.8% for Johnson & Johnson (JNJ). A $10,000 investment in GILD five years ago would be worth approximately $26K today (assuming dividends reinvested). Over 10 years, the gap is even starker: JNJ returned +175.7% versus GILD's +101.0%. 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 — GILD or JNJ?
By beta (market sensitivity over 5 years), Johnson & Johnson (JNJ) is the lower-risk stock at 0.06β versus Gilead Sciences, Inc.'s 0.38β — meaning GILD is approximately 586% 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 139% for Gilead Sciences, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — GILD or JNJ?
Johnson & Johnson (JNJ) is the more profitable company, earning 15.8% net margin versus 1.7% for Gilead Sciences, Inc. — meaning it keeps 15.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: JNJ leads at 24.9% versus 5.8% for GILD. At the gross margin level — before operating expenses — GILD leads at 78.3%, 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 GILD or JNJ more undervalued right now?
On forward earnings alone, Gilead Sciences, Inc. (GILD) trades at 17.1x forward P/E versus 21.5x for Johnson & Johnson — 4.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GILD: 5.7% to $157.38.
07Which pays a better dividend — GILD or JNJ?
All stocks in this comparison pay dividends. Gilead Sciences, Inc. (GILD) offers the highest yield at 2.1%, versus 2.0% for Johnson & Johnson (JNJ).
08Is GILD 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%, GILD: +101.0%), 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 GILD 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.
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