Comprehensive Stock Comparison
Compare Johnson & Johnson (JNJ) vs Pfizer Inc. (PFE) 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
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.
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.
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 | JNJJohnson & Johnson | PFEPfizer Inc. |
|---|---|---|
| RevenueTrailing 12 months | $92.1B | $62.6B |
| EBITDAEarnings before interest/tax | $31.4B | $15.7B |
| Net IncomeAfter-tax profit | $25.1B | $7.8B |
| Free Cash FlowCash after capex | $19.1B | $4.6B |
| Gross MarginGross profit ÷ Revenue | +68.1% | +70.3% |
| Operating MarginEBIT ÷ Revenue | +26.1% | +24.7% |
| Net MarginNet income ÷ Revenue | +27.3% | +12.4% |
| FCF MarginFCF ÷ Revenue | +20.7% | +7.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.8% | -1.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +91.0% | -5.0% |
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 | JNJJohnson & Johnson | PFEPfizer Inc. |
|---|---|---|
| Market CapShares × price | $598.7B | $157.2B |
| Enterprise ValueMkt cap + debt − cash | $611.2B | $157.2B |
| Trailing P/EPrice ÷ TTM EPS | 42.91x | 20.33x |
| Forward P/EPrice ÷ next-FY EPS est. | 21.48x | 9.35x |
| PEG RatioP/E ÷ EPS growth rate | 38.22x | — |
| EV / EBITDAEnterprise value multiple | 20.73x | 7.73x |
| Price / SalesMarket cap ÷ Revenue | 6.74x | 2.51x |
| Price / BookPrice ÷ Book value/share | 8.44x | 1.69x |
| 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 | JNJJohnson & Johnson | PFEPfizer Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +31.7% | +8.3% |
| ROA (TTM)Return on assets | +13.0% | — |
| ROICReturn on invested capital | +20.7% | +9.4% |
| ROCEReturn on capital employed | +17.6% | — |
| Piotroski ScoreFundamental quality 0–9 | 5 | 2 |
| Debt / EquityFinancial leverage | 0.51x | — |
| Net DebtTotal debt minus cash | $12.5B | $0 |
| Cash & Equiv.Liquid assets | $24.1B | — |
| Total DebtShort + long-term debt | $36.6B | $0 |
| Interest CoverageEBIT ÷ Interest expense | 48.23x | 3.82x |
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 | JNJJohnson & Johnson | PFEPfizer Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +20.4% | +11.5% |
| 1-Year ReturnPast 12 months | +53.7% | +11.1% |
| 3-Year ReturnCumulative with dividends | +71.8% | -19.4% |
| 5-Year ReturnCumulative with dividends | +70.8% | +6.5% |
| 10-Year ReturnCumulative with dividends | +175.7% | +51.9% |
| CAGR (3Y)Annualised 3-year return | +19.8% | -6.9% |
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 | JNJJohnson & Johnson | PFEPfizer Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.06x | 0.50x |
| 52-Week HighHighest price in past year | $248.93 | $27.94 |
| 52-Week LowLowest price in past year | $141.50 | $20.92 |
| % of 52W HighCurrent price vs 52-week peak | +99.8% | +99.0% |
| RSI (14)Momentum oscillator 0–100 | 66.2 | 54.7 |
| Avg Volume (50D)Average daily shares traded | 7.1M | 40.1M |
Analyst Outlook
Wall Street rates JNJ as "Buy" and PFE as "Hold". 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 | JNJJohnson & Johnson | PFEPfizer Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $229.33 | $27.36 |
| # AnalystsCovering analysts | 39 | 37 |
| Dividend YieldAnnual dividend ÷ price | +2.0% | — |
| Dividend StreakConsecutive years of raises | 36 | 14 |
| Dividend / ShareAnnual DPS | $4.87 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.4% | 0.0% |
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 |
|---|---|---|---|
| Johnson & Johnson (JNJ) | 100 | 171.59 | +71.6% |
| Pfizer Inc. (PFE) | 100 | 84.15 | -15.8% |
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 |
|---|---|---|---|
| Johnson & Johnson (JNJ) | $71.9B | $88.8B | +23.6% |
| Pfizer Inc. (PFE) | $52.8B | $62.6B | +18.5% |
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 |
|---|---|---|---|
| Johnson & Johnson (JNJ) | 23.0% | 15.8% | -31.2% |
| Pfizer Inc. (PFE) | 13.7% | 12.4% | -9.1% |
Pfizer Inc.'s net margin went from 14% (2016) to 12% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Johnson & Johnson (JNJ) | 297.3 | 25 | -91.6% |
| Pfizer Inc. (PFE) | 9.8 | 18.3 | +86.7% |
Johnson & Johnson has traded in a 11x–297x P/E range over 8 years; current trailing P/E is ~43x. Pfizer Inc. has traded in a 9x–78x P/E range over 9 years; current trailing P/E is ~20x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Johnson & Johnson (JNJ) | 5.93 | 5.79 | -2.4% |
| Pfizer Inc. (PFE) | 1.17 | 1.36 | +16.2% |
Pfizer Inc.'s EPS grew from $1.17 (2016) to $1.36 (2025) — a 2% CAGR.
Chart 6Free Cash Flow — 5 Years
Johnson & Johnson generated $20B FCF in 2024 (+0% vs 2021). Pfizer Inc. generated $0M FCF in 2025 (-100% vs 2021).
JNJ vs PFE: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is JNJ or PFE 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 — JNJ or PFE?
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 — JNJ or PFE?
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 — JNJ or PFE?
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 — JNJ or PFE?
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 JNJ or PFE 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 — JNJ or PFE?
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 JNJ or PFE 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 JNJ and PFE?
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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