LLY vs JNJ

For growth investors, Eli Lilly and Company (LLY) is the stronger pick with 44.

7% revenue growth year-over-year, versus 4. 3% for Johnson & Johnson (JNJ). Johnson & Johnson (JNJ) offers the better valuation at 39. 0x trailing P/E (19. 5x forward), making it the more compelling value choice. Analysts rate Eli Lilly and Company (LLY) a "Buy" — based on 45 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.

On trailing P/E, Johnson & Johnson (JNJ) is the cheapest at 39.

0x versus Eli Lilly and Company at 43. 1x. On forward P/E, Johnson & Johnson is actually cheaper at 19. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Eli Lilly and Company wins at 0. 99x versus Johnson & Johnson's 34. 64x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Eli Lilly and Company (LLY) delivered a total return of +424.

9%, compared to +49. 2% for Johnson & Johnson (JNJ). Over 10 years, the gap is even starker: LLY returned +1261% versus JNJ's +136. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Johnson & Johnson (JNJ) is the lower-risk stock at 0.

06β versus Eli Lilly and Company's 0. 71β — meaning LLY is approximately 1144% 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 160% for Eli Lilly and Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Eli Lilly and Company (LLY) is pulling ahead at 44.

7% versus 4. 3% for Johnson & Johnson (JNJ). On earnings-per-share growth, the picture is similar: Eli Lilly and Company grew EPS 96. 0% year-over-year, compared to -57. 8% for Johnson & Johnson. Over a 3-year CAGR, LLY leads at 31. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Eli Lilly and Company (LLY) is the more profitable company, earning 31.

7% net margin versus 15. 8% for Johnson & Johnson — meaning it keeps 31. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LLY leads at 45. 6% versus 24. 9% for JNJ. At the gross margin level — before operating expenses — LLY leads at 83. 8%, 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.

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, Eli Lilly and Company (LLY) is the more undervalued stock at a PEG of 0. 99x versus Johnson & Johnson's 34. 64x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Johnson & Johnson (JNJ) trades at 19. 5x forward P/E versus 28. 6x for Eli Lilly and Company — 9. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LLY: 27. 4% to $1258. 47.

All stocks in this comparison pay dividends.

Johnson & Johnson (JNJ) offers the highest yield at 2. 2%, versus 0. 6% for Eli Lilly and Company (LLY).

For long-horizon retirement investors, Eli Lilly and Company (LLY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

71), 0. 6% yield, +1261% 10Y return). Both have compounded well over 10 years (LLY: +1261%, JNJ: +136. 8%), 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.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: LLY is a large-cap high-growth stock; JNJ is a large-cap quality compounder stock. 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.