Comprehensive Stock Comparison
Compare Johnson & Johnson (JNJ) vs AstraZeneca PLC (AZN) 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 | 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
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.
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.
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 | JNJJohnson & Johnson | AZNAstraZeneca PLC |
|---|---|---|
| RevenueTrailing 12 months | $92.1B | $58.7B |
| EBITDAEarnings before interest/tax | $31.4B | $19.5B |
| Net IncomeAfter-tax profit | $25.1B | $10.2B |
| Free Cash FlowCash after capex | $19.1B | $10.5B |
| Gross MarginGross profit ÷ Revenue | +68.1% | +81.9% |
| Operating MarginEBIT ÷ Revenue | +26.1% | +23.4% |
| Net MarginNet income ÷ Revenue | +27.3% | +17.4% |
| FCF MarginFCF ÷ Revenue | +20.7% | +17.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.8% | +4.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +91.0% | +54.2% |
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 | JNJJohnson & Johnson | AZNAstraZeneca PLC |
|---|---|---|
| Market CapShares × price | $598.7B | $323.2B |
| Enterprise ValueMkt cap + debt − cash | $611.2B | $347.1B |
| Trailing P/EPrice ÷ TTM EPS | 42.91x | 63.75x |
| Forward P/EPrice ÷ next-FY EPS est. | 21.48x | 20.30x |
| PEG RatioP/E ÷ EPS growth rate | 38.22x | 2.92x |
| EV / EBITDAEnterprise value multiple | 20.73x | 17.82x |
| Price / SalesMarket cap ÷ Revenue | 6.74x | 5.50x |
| Price / BookPrice ÷ Book value/share | 8.44x | 13.37x |
| Price / FCFMarket cap ÷ FCF | 30.17x | 27.47x |
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 | JNJJohnson & Johnson | AZNAstraZeneca PLC |
|---|---|---|
| ROE (TTM)Return on equity | +31.7% | +21.0% |
| ROA (TTM)Return on assets | +13.0% | +9.0% |
| ROICReturn on invested capital | +20.7% | +14.9% |
| ROCEReturn on capital employed | +17.6% | +17.2% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 8 |
| Debt / EquityFinancial leverage | 0.51x | 0.61x |
| Net DebtTotal debt minus cash | $12.5B | $24.0B |
| Cash & Equiv.Liquid assets | $24.1B | $5.7B |
| Total DebtShort + long-term debt | $36.6B | $29.7B |
| Interest CoverageEBIT ÷ Interest expense | 48.23x | 8.32x |
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 | JNJJohnson & Johnson | AZNAstraZeneca PLC |
|---|---|---|
| YTD ReturnYear-to-date | +20.4% | +15.3% |
| 1-Year ReturnPast 12 months | +53.7% | +40.3% |
| 3-Year ReturnCumulative with dividends | +71.8% | +65.7% |
| 5-Year ReturnCumulative with dividends | +70.8% | +121.6% |
| 10-Year ReturnCumulative with dividends | +175.7% | +296.2% |
| CAGR (3Y)Annualised 3-year return | +19.8% | +18.3% |
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 | JNJJohnson & Johnson | AZNAstraZeneca PLC |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.06x | 0.27x |
| 52-Week HighHighest price in past year | $248.93 | $212.71 |
| 52-Week LowLowest price in past year | $141.50 | $91.44 |
| % of 52W HighCurrent price vs 52-week peak | +99.8% | +98.0% |
| RSI (14)Momentum oscillator 0–100 | 66.2 | 59.1 |
| Avg Volume (50D)Average daily shares traded | 7.1M | 1.5M |
Analyst Outlook
Wall Street rates JNJ as "Buy" and AZN 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 | JNJJohnson & Johnson | AZNAstraZeneca PLC |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $229.33 | $105.50 |
| # AnalystsCovering analysts | 39 | 41 |
| Dividend YieldAnnual dividend ÷ price | +2.0% | +0.8% |
| Dividend StreakConsecutive years of raises | 36 | 4 |
| Dividend / ShareAnnual DPS | $4.87 | $1.63 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.4% | +0.2% |
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% |
| AstraZeneca PLC (AZN) | 100 | 215.94 | +115.9% |
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 |
|---|---|---|---|
| Johnson & Johnson (JNJ) | $71.9B | $88.8B | +23.6% |
| AstraZeneca PLC (AZN) | $23.0B | $58.7B | +155.4% |
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 |
|---|---|---|---|
| Johnson & Johnson (JNJ) | 23.0% | 15.8% | -31.2% |
| AstraZeneca PLC (AZN) | 15.2% | 17.5% | +14.8% |
AstraZeneca PLC's net margin went from 15% (2016) to 17% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Johnson & Johnson (JNJ) | 297.3 | 25 | -91.6% |
| AstraZeneca PLC (AZN) | 54.3 | 53.7 | -1.1% |
Johnson & Johnson has traded in a 11x–297x P/E range over 8 years; current trailing P/E is ~43x. AstraZeneca PLC has traded in a 54x–194x P/E range over 8 years; current trailing P/E is ~64x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Johnson & Johnson (JNJ) | 5.93 | 5.79 | -2.4% |
| AstraZeneca PLC (AZN) | 1.38 | 3.27 | +137.0% |
AstraZeneca PLC's EPS grew from $1.38 (2016) to $3.27 (2025) — a 10% CAGR.
Chart 6Free Cash Flow — 5 Years
Johnson & Johnson generated $20B FCF in 2024 (+0% vs 2021). AstraZeneca PLC generated $12B FCF in 2025 (+213% vs 2021).
JNJ vs AZN: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is JNJ or AZN 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 AZN?
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 — JNJ or AZN?
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 — JNJ or AZN?
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 — JNJ or AZN?
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 JNJ or AZN 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 — JNJ or AZN?
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 JNJ or AZN 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 JNJ and AZN?
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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