Comprehensive Stock Comparison
Compare Pfizer Inc. (PFE) 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 | JNJ | 4.3% revenue growth vs PFE's -1.6% |
| Value | PFE | Lower P/E (9.4x vs 21.5x) |
| Quality / Margins | JNJ | 27.3% net margin vs PFE's 12.4% |
| Stability / Safety | JNJ | Beta 0.06 vs PFE's 0.50 |
| Dividends | JNJ | 2.0% yield; 36-year raise streak; PFE pays no meaningful dividend |
| Momentum (1Y) | JNJ | +53.7% vs PFE's +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
Pfizer is a global biopharmaceutical company that discovers, develops, and commercializes innovative medicines and vaccines across multiple therapeutic areas. It generates revenue primarily from pharmaceutical product sales — including blockbuster drugs like Eliquis, Prevnar, and Comirnaty — with vaccines contributing roughly 25% of total revenue. The company's competitive advantage lies in its massive R&D scale, extensive global manufacturing capabilities, and deep expertise in developing complex biologics and vaccines.
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). PFE leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
JNJ and PFE operate at a comparable scale, with $92.1B and $62.6B in trailing revenue. JNJ is the more profitable business, keeping 27.3% of every revenue dollar as net income compared to PFE's 12.4%. On growth, JNJ holds the edge at +6.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | PFEPfizer Inc. | JNJJohnson & Johnson |
|---|---|---|
| RevenueTrailing 12 months | $62.6B | $92.1B |
| EBITDAEarnings before interest/tax | $15.7B | $31.4B |
| Net IncomeAfter-tax profit | $7.8B | $25.1B |
| Free Cash FlowCash after capex | $4.6B | $19.1B |
| Gross MarginGross profit ÷ Revenue | +70.3% | +68.1% |
| Operating MarginEBIT ÷ Revenue | +24.7% | +26.1% |
| Net MarginNet income ÷ Revenue | +12.4% | +27.3% |
| FCF MarginFCF ÷ Revenue | +7.3% | +20.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | -1.2% | +6.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -5.0% | +91.0% |
Valuation Metrics
At 20.3x trailing earnings, PFE trades at a 53% valuation discount to JNJ's 42.9x P/E. On an enterprise value basis, PFE's 7.7x EV/EBITDA is more attractive than JNJ's 20.7x.
| Metric | PFEPfizer Inc. | JNJJohnson & Johnson |
|---|---|---|
| Market CapShares × price | $157.2B | $598.7B |
| Enterprise ValueMkt cap + debt − cash | $157.2B | $611.2B |
| Trailing P/EPrice ÷ TTM EPS | 20.33x | 42.91x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.35x | 21.48x |
| PEG RatioP/E ÷ EPS growth rate | — | 38.22x |
| EV / EBITDAEnterprise value multiple | 7.73x | 20.73x |
| Price / SalesMarket cap ÷ Revenue | 2.51x | 6.74x |
| Price / BookPrice ÷ Book value/share | 1.69x | 8.44x |
| Price / FCFMarket cap ÷ FCF | — | 30.17x |
Profitability & Efficiency
JNJ delivers a 31.7% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $8 for PFE. On the Piotroski fundamental quality scale (0–9), JNJ scores 5/9 vs PFE's 2/9, reflecting solid financial health.
| Metric | PFEPfizer Inc. | JNJJohnson & Johnson |
|---|---|---|
| ROE (TTM)Return on equity | +8.3% | +31.7% |
| ROA (TTM)Return on assets | — | +13.0% |
| ROICReturn on invested capital | +9.4% | +20.7% |
| ROCEReturn on capital employed | — | +17.6% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 5 |
| Debt / EquityFinancial leverage | — | 0.51x |
| Net DebtTotal debt minus cash | $0 | $12.5B |
| Cash & Equiv.Liquid assets | — | $24.1B |
| Total DebtShort + long-term debt | $0 | $36.6B |
| Interest CoverageEBIT ÷ Interest expense | 3.82x | 48.23x |
Total Returns (with DRIP)
A $10,000 investment in JNJ five years ago would be worth $17,079 today (with dividends reinvested), compared to $10,653 for PFE. Over the past 12 months, JNJ leads with a +53.7% total return vs PFE's +11.1%. The 3-year compound annual growth rate (CAGR) favors JNJ at 19.8% vs PFE's -6.9% — a key indicator of consistent wealth creation.
| Metric | PFEPfizer Inc. | JNJJohnson & Johnson |
|---|---|---|
| YTD ReturnYear-to-date | +11.5% | +20.4% |
| 1-Year ReturnPast 12 months | +11.1% | +53.7% |
| 3-Year ReturnCumulative with dividends | -19.4% | +71.8% |
| 5-Year ReturnCumulative with dividends | +6.5% | +70.8% |
| 10-Year ReturnCumulative with dividends | +51.9% | +175.7% |
| CAGR (3Y)Annualised 3-year return | -6.9% | +19.8% |
Risk & Volatility
JNJ is the less volatile stock with a 0.06 beta — it tends to amplify market swings less than PFE's 0.50 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | PFEPfizer Inc. | JNJJohnson & Johnson |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.50x | 0.06x |
| 52-Week HighHighest price in past year | $27.94 | $248.93 |
| 52-Week LowLowest price in past year | $20.92 | $141.50 |
| % of 52W HighCurrent price vs 52-week peak | +99.0% | +99.8% |
| RSI (14)Momentum oscillator 0–100 | 54.7 | 66.2 |
| Avg Volume (50D)Average daily shares traded | 40.1M | 7.1M |
Analyst Outlook
Wall Street rates PFE as "Hold" and JNJ as "Buy". Consensus price targets imply -1.0% upside for PFE (target: $27) vs -7.7% for JNJ (target: $229). JNJ is the only dividend payer here at 1.96% yield — a key consideration for income-focused portfolios.
| Metric | PFEPfizer Inc. | JNJJohnson & Johnson |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $27.36 | $229.33 |
| # AnalystsCovering analysts | 37 | 39 |
| Dividend YieldAnnual dividend ÷ price | — | +2.0% |
| Dividend StreakConsecutive years of raises | 14 | 36 |
| Dividend / ShareAnnual DPS | — | $4.87 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.4% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Pfizer Inc. (PFE) | 100 | 84.15 | -15.8% |
| Johnson & Johnson (JNJ) | 100 | 171.59 | +71.6% |
Johnson & Johnson (JNJ) returned +71% over 5 years vs Pfizer Inc. (PFE)'s +7%. A $10,000 investment in JNJ 5 years ago would be worth $17,079 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Pfizer Inc. (PFE) | $52.8B | $62.6B | +18.5% |
| Johnson & Johnson (JNJ) | $71.9B | $88.8B | +23.6% |
Pfizer Inc.'s revenue grew from $52.8B (2016) to $62.6B (2025) — a 1.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Pfizer Inc. (PFE) | 13.7% | 12.4% | -9.1% |
| Johnson & Johnson (JNJ) | 23.0% | 15.8% | -31.2% |
Pfizer Inc.'s net margin went from 14% (2016) to 12% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Pfizer Inc. (PFE) | 9.8 | 18.3 | +86.7% |
| Johnson & Johnson (JNJ) | 297.3 | 25 | -91.6% |
Pfizer Inc. has traded in a 9x–78x P/E range over 9 years; current trailing P/E is ~20x. 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 |
|---|---|---|---|
| Pfizer Inc. (PFE) | 1.17 | 1.36 | +16.2% |
| Johnson & Johnson (JNJ) | 5.93 | 5.79 | -2.4% |
Pfizer Inc.'s EPS grew from $1.17 (2016) to $1.36 (2025) — a 2% CAGR.
Chart 6Free Cash Flow — 5 Years
Pfizer Inc. generated $0M FCF in 2025 (-100% vs 2021). Johnson & Johnson generated $20B FCF in 2024 (+0% vs 2021).
PFE vs JNJ: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is PFE or JNJ a better buy right now?
Pfizer Inc. (PFE) offers the better valuation at 20.3x trailing P/E (9.4x 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 — PFE or JNJ?
On trailing P/E, Pfizer Inc. (PFE) is the cheapest at 20.3x versus Johnson & Johnson at 42.9x. On forward P/E, Pfizer Inc. is actually cheaper at 9.4x.
03Which is the better long-term investment — PFE or JNJ?
Over the past 5 years, Johnson & Johnson (JNJ) delivered a total return of +70.8%, compared to +6.5% for Pfizer Inc. (PFE). A $10,000 investment in JNJ five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: JNJ returned +175.7% versus PFE's +51.9%. 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 — PFE or JNJ?
By beta (market sensitivity over 5 years), Johnson & Johnson (JNJ) is the lower-risk stock at 0.06β versus Pfizer Inc.'s 0.50β — meaning PFE is approximately 806% more volatile than JNJ relative to the S&P 500.
05Which has better profit margins — PFE or JNJ?
Johnson & Johnson (JNJ) is the more profitable company, earning 15.8% net margin versus 12.4% for Pfizer 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 24.7% for PFE. At the gross margin level — before operating expenses — PFE leads at 70.3%, 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 PFE or JNJ more undervalued right now?
On forward earnings alone, Pfizer Inc. (PFE) trades at 9.4x forward P/E versus 21.5x for Johnson & Johnson — 12.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PFE: -1.0% to $27.36.
07Which pays a better dividend — PFE or JNJ?
In this comparison, JNJ (2.0% yield) pays a dividend. PFE does not pay a meaningful dividend and should not be held primarily for income.
08Is PFE 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%, PFE: +51.9%), 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 PFE 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. JNJ pays a dividend while PFE does not, making them suitable for different income and tax situations. 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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