Comprehensive Stock Comparison
Compare Johnson & Johnson (JNJ) vs AbbVie Inc. (ABBV) 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 | JNJ | 4.3% revenue growth vs ABBV's 3.7% |
| Value | ABBV | Lower P/E (16.0x vs 21.5x) |
| Quality / Margins | JNJ | 27.3% net margin vs ABBV's 4.0% |
| Stability / Safety | JNJ | Beta 0.06 vs ABBV's 0.42, lower leverage |
| Dividends | ABBV | 2.7% yield, 12-year raise streak, vs JNJ's 2.0% |
| Momentum (1Y) | JNJ | +53.7% vs ABBV's +14.2% |
| Efficiency (ROA) | JNJ | 13.0% ROA vs ABBV's 1.8%, ROIC 20.7% vs 11.1% |
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
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.
AbbVie is a global biopharmaceutical company that develops and markets innovative medicines for serious health conditions. It generates revenue primarily from prescription drug sales — with immunology drugs like Skyrizi and Rinvoq now driving growth as Humira faces biosimilar competition — and also earns income from its aesthetics portfolio including Botox. The company's competitive advantage lies in its deep R&D pipeline, strong patent portfolio, and established commercial infrastructure for launching new blockbuster therapies.
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 4 of 6 categories — strongest in Valuation Metrics and Profitability & Efficiency. 2 categories are tied.
Financial Metrics (TTM)
JNJ is the larger business by revenue, generating $92.1B annually — 1.5x ABBV's $59.6B. JNJ is the more profitable business, keeping 27.3% of every revenue dollar as net income compared to ABBV's 4.0%.
| Metric | JNJJohnson & Johnson | ABBVAbbVie Inc. |
|---|---|---|
| RevenueTrailing 12 months | $92.1B | $59.6B |
| EBITDAEarnings before interest/tax | $31.4B | $17.3B |
| Net IncomeAfter-tax profit | $25.1B | $2.4B |
| Free Cash FlowCash after capex | $19.1B | $20.6B |
| Gross MarginGross profit ÷ Revenue | +68.1% | +69.7% |
| Operating MarginEBIT ÷ Revenue | +26.1% | +15.2% |
| Net MarginNet income ÷ Revenue | +27.3% | +4.0% |
| FCF MarginFCF ÷ Revenue | +20.7% | +34.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.8% | +9.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +91.0% | -88.7% |
Valuation Metrics
At 42.9x trailing earnings, JNJ trades at a 56% valuation discount to ABBV's 97.1x P/E. On an enterprise value basis, JNJ's 20.7x EV/EBITDA is more attractive than ABBV's 27.0x.
| Metric | JNJJohnson & Johnson | ABBVAbbVie Inc. |
|---|---|---|
| Market CapShares × price | $598.7B | $410.1B |
| Enterprise ValueMkt cap + debt − cash | $611.2B | $472.4B |
| Trailing P/EPrice ÷ TTM EPS | 42.91x | 97.08x |
| Forward P/EPrice ÷ next-FY EPS est. | 21.48x | 15.95x |
| PEG RatioP/E ÷ EPS growth rate | 38.22x | — |
| EV / EBITDAEnterprise value multiple | 20.73x | 26.96x |
| Price / SalesMarket cap ÷ Revenue | 6.74x | 7.28x |
| Price / BookPrice ÷ Book value/share | 8.44x | 122.29x |
| Price / FCFMarket cap ÷ FCF | 30.17x | 23.00x |
Profitability & Efficiency
ABBV delivers a 62.2% return on equity — every $100 of shareholder capital generates $62 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 ABBV's 20.17x. On the Piotroski fundamental quality scale (0–9), ABBV scores 6/9 vs JNJ's 5/9, reflecting solid financial health.
| Metric | JNJJohnson & Johnson | ABBVAbbVie Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +31.7% | +62.2% |
| ROA (TTM)Return on assets | +13.0% | +1.8% |
| ROICReturn on invested capital | +20.7% | +11.1% |
| ROCEReturn on capital employed | +17.6% | +9.5% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 0.51x | 20.17x |
| Net DebtTotal debt minus cash | $12.5B | $62.3B |
| Cash & Equiv.Liquid assets | $24.1B | $5.5B |
| Total DebtShort + long-term debt | $36.6B | $67.8B |
| Interest CoverageEBIT ÷ Interest expense | 48.23x | 1.58x |
Total Returns (with DRIP)
A $10,000 investment in ABBV five years ago would be worth $24,166 today (with dividends reinvested), compared to $17,079 for JNJ. Over the past 12 months, JNJ leads with a +53.7% total return vs ABBV's +14.2%. The 3-year compound annual growth rate (CAGR) favors JNJ at 19.8% vs ABBV's 17.7% — a key indicator of consistent wealth creation.
| Metric | JNJJohnson & Johnson | ABBVAbbVie Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +20.4% | +1.9% |
| 1-Year ReturnPast 12 months | +53.7% | +14.2% |
| 3-Year ReturnCumulative with dividends | +71.8% | +63.1% |
| 5-Year ReturnCumulative with dividends | +70.8% | +141.7% |
| 10-Year ReturnCumulative with dividends | +175.7% | +413.0% |
| CAGR (3Y)Annualised 3-year return | +19.8% | +17.7% |
Risk & Volatility
JNJ is the less volatile stock with a 0.06 beta — it tends to amplify market swings less than ABBV's 0.42 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 ABBV's 94.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | JNJJohnson & Johnson | ABBVAbbVie Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.06x | 0.42x |
| 52-Week HighHighest price in past year | $248.93 | $244.81 |
| 52-Week LowLowest price in past year | $141.50 | $164.39 |
| % of 52W HighCurrent price vs 52-week peak | +99.8% | +94.8% |
| RSI (14)Momentum oscillator 0–100 | 66.2 | 49.6 |
| Avg Volume (50D)Average daily shares traded | 7.1M | 5.7M |
Analyst Outlook
Wall Street rates JNJ as "Buy" and ABBV as "Buy". Consensus price targets imply 10.4% upside for ABBV (target: $256) vs -7.7% for JNJ (target: $229). For income investors, ABBV offers the higher dividend yield at 2.68% vs JNJ's 1.96%.
| Metric | JNJJohnson & Johnson | ABBVAbbVie Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $229.33 | $256.15 |
| # AnalystsCovering analysts | 39 | 39 |
| Dividend YieldAnnual dividend ÷ price | +2.0% | +2.7% |
| Dividend StreakConsecutive years of raises | 36 | 12 |
| Dividend / ShareAnnual DPS | $4.87 | $6.22 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.4% | +0.4% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Johnson & Johnson (JNJ) | 100 | 171.59 | +71.6% |
| AbbVie Inc. (ABBV) | 100 | 263.26 | +163.3% |
AbbVie Inc. (ABBV) returned +142% over 5 years vs Johnson & Johnson (JNJ)'s +71%. A $10,000 investment in ABBV 5 years ago would be worth $24,166 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Johnson & Johnson (JNJ) | $70.1B | $88.8B | +26.8% |
| AbbVie Inc. (ABBV) | $22.9B | $56.3B | +146.4% |
Johnson & Johnson's revenue grew from $70.1B (2015) to $88.8B (2024) — a 2.7% CAGR. AbbVie Inc.'s revenue grew from $22.9B (2015) to $56.3B (2024) — a 10.5% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Johnson & Johnson (JNJ) | 22.0% | 15.8% | -28.0% |
| AbbVie Inc. (ABBV) | 22.5% | 7.6% | -66.3% |
Johnson & Johnson's net margin went from 22% (2015) to 16% (2024). AbbVie Inc.'s net margin went from 23% (2015) to 8% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Johnson & Johnson (JNJ) | 297.3 | 25 | -91.6% |
| AbbVie Inc. (ABBV) | 29.3 | 74.4 | +153.9% |
Johnson & Johnson has traded in a 11x–297x P/E range over 8 years; current trailing P/E is ~43x. AbbVie Inc. has traded in a 17x–74x P/E range over 8 years; current trailing P/E is ~97x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Johnson & Johnson (JNJ) | 5.48 | 5.79 | +5.7% |
| AbbVie Inc. (ABBV) | 3.13 | 2.39 | -23.6% |
Johnson & Johnson's EPS grew from $5.48 (2015) to $5.79 (2024) — a 1% CAGR. AbbVie Inc.'s EPS grew from $3.13 (2015) to $2.39 (2024) — a -3% CAGR.
Chart 6Free Cash Flow — 5 Years
Johnson & Johnson generated $20B FCF in 2024 (+0% vs 2021). AbbVie Inc. generated $18B FCF in 2024 (-19% vs 2021).
JNJ vs ABBV: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is JNJ or ABBV 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 Johnson & Johnson (JNJ) a "Buy" — based on 39 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 — JNJ or ABBV?
On trailing P/E, Johnson & Johnson (JNJ) is the cheapest at 42.9x versus AbbVie Inc. at 97.1x. On forward P/E, AbbVie Inc. is actually cheaper at 16.0x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — JNJ or ABBV?
Over the past 5 years, AbbVie Inc. (ABBV) delivered a total return of +141.7%, compared to +70.8% for Johnson & Johnson (JNJ). A $10,000 investment in ABBV five years ago would be worth approximately $24K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ABBV returned +413.0% 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 — JNJ or ABBV?
By beta (market sensitivity over 5 years), Johnson & Johnson (JNJ) is the lower-risk stock at 0.06β versus AbbVie Inc.'s 0.42β — meaning ABBV is approximately 662% 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 20% for AbbVie Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — JNJ or ABBV?
Johnson & Johnson (JNJ) is the more profitable company, earning 15.8% net margin versus 7.6% for AbbVie 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 16.2% for ABBV. At the gross margin level — before operating expenses — ABBV leads at 70.0%, 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 JNJ or ABBV more undervalued right now?
On forward earnings alone, AbbVie Inc. (ABBV) trades at 16.0x forward P/E versus 21.5x for Johnson & Johnson — 5.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ABBV: 10.4% to $256.15.
07Which pays a better dividend — JNJ or ABBV?
All stocks in this comparison pay dividends. AbbVie Inc. (ABBV) offers the highest yield at 2.7%, versus 2.0% for Johnson & Johnson (JNJ).
08Is JNJ or ABBV 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%, ABBV: +413.0%), 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 JNJ and ABBV?
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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