Comprehensive Stock Comparison
Compare Novo Nordisk A/S (NVO) 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 NVO's 2.3% |
| Value | NVO | Lower P/E (1.8x vs 21.5x), PEG 0.09 vs 38.22 |
| Quality / Margins | NVO | 33.1% net margin vs JNJ's 27.3% |
| Stability / Safety | JNJ | Beta 0.06 vs NVO's 1.08, lower leverage |
| Dividends | NVO | 4.7% yield, 8-year raise streak, vs JNJ's 2.0% |
| Momentum (1Y) | JNJ | +53.7% vs NVO's -57.3% |
| Efficiency (ROA) | NVO | 18.1% ROA vs JNJ's 13.0%, ROIC 34.9% vs 20.7% |
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
Novo Nordisk is a global pharmaceutical company specializing in diabetes and obesity treatments. It generates revenue primarily from diabetes care products—mainly insulin and GLP-1 drugs—which account for over 80% of sales, with its obesity segment growing rapidly. The company's moat comes from its deep expertise in peptide-based therapies, extensive clinical data, and strong brand recognition in diabetes care.
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
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
JNJ leads in 2 of 6 categories (Total Returns, Risk & Volatility). NVO leads in 1 (Valuation Metrics). 3 tied.
Financial Metrics (TTM)
NVO is the larger business by revenue, generating $297.2B annually — 3.2x JNJ's $92.1B. NVO is the more profitable business, keeping 33.1% of every revenue dollar as net income compared to JNJ's 27.3%. On growth, JNJ holds the edge at +6.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | NVONovo Nordisk A/S | JNJJohnson & Johnson |
|---|---|---|
| RevenueTrailing 12 months | $297.2B | $92.1B |
| EBITDAEarnings before interest/tax | $144.2B | $31.4B |
| Net IncomeAfter-tax profit | $98.5B | $25.1B |
| Free Cash FlowCash after capex | $56.2B | $19.1B |
| Gross MarginGross profit ÷ Revenue | +81.0% | +68.1% |
| Operating MarginEBIT ÷ Revenue | +41.4% | +26.1% |
| Net MarginNet income ÷ Revenue | +33.1% | +27.3% |
| FCF MarginFCF ÷ Revenue | +18.9% | +20.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | -21.5% | +6.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -4.6% | +91.0% |
Valuation Metrics
At 10.3x trailing earnings, NVO trades at a 76% valuation discount to JNJ's 42.9x P/E. Adjusting for growth (PEG ratio), NVO offers better value at 0.50x vs JNJ's 38.22x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | NVONovo Nordisk A/S | JNJJohnson & Johnson |
|---|---|---|
| Market CapShares × price | $126.3B | $598.7B |
| Enterprise ValueMkt cap + debt − cash | $142.8B | $611.2B |
| Trailing P/EPrice ÷ TTM EPS | 10.30x | 42.91x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.76x | 21.48x |
| PEG RatioP/E ÷ EPS growth rate | 0.50x | 38.22x |
| EV / EBITDAEnterprise value multiple | 6.27x | 20.73x |
| Price / SalesMarket cap ÷ Revenue | 2.69x | 6.74x |
| Price / BookPrice ÷ Book value/share | 5.44x | 8.44x |
| Price / FCFMarket cap ÷ FCF | 14.11x | 30.17x |
Profitability & Efficiency
NVO delivers a 50.8% return on equity — every $100 of shareholder capital generates $51 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 NVO's 0.67x.
| Metric | NVONovo Nordisk A/S | JNJJohnson & Johnson |
|---|---|---|
| ROE (TTM)Return on equity | +50.8% | +31.7% |
| ROA (TTM)Return on assets | +18.1% | +13.0% |
| ROICReturn on invested capital | +34.9% | +20.7% |
| ROCEReturn on capital employed | +42.8% | +17.6% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 0.67x | 0.51x |
| Net DebtTotal debt minus cash | $104.5B | $12.5B |
| Cash & Equiv.Liquid assets | $26.5B | $24.1B |
| Total DebtShort + long-term debt | $131.0B | $36.6B |
| Interest CoverageEBIT ÷ Interest expense | 20.26x | 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 $11,607 for NVO. Over the past 12 months, JNJ leads with a +53.7% total return vs NVO's -57.3%. The 3-year compound annual growth rate (CAGR) favors JNJ at 19.8% vs NVO's -16.7% — a key indicator of consistent wealth creation.
| Metric | NVONovo Nordisk A/S | JNJJohnson & Johnson |
|---|---|---|
| YTD ReturnYear-to-date | -28.5% | +20.4% |
| 1-Year ReturnPast 12 months | -57.3% | +53.7% |
| 3-Year ReturnCumulative with dividends | -42.2% | +71.8% |
| 5-Year ReturnCumulative with dividends | +16.1% | +70.8% |
| 10-Year ReturnCumulative with dividends | +76.8% | +175.7% |
| CAGR (3Y)Annualised 3-year return | -16.7% | +19.8% |
Risk & Volatility
JNJ is the less volatile stock with a 0.06 beta — it tends to amplify market swings less than NVO's 1.08 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 NVO's 40.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NVONovo Nordisk A/S | JNJJohnson & Johnson |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.08x | 0.06x |
| 52-Week HighHighest price in past year | $91.90 | $248.93 |
| 52-Week LowLowest price in past year | $37.31 | $141.50 |
| % of 52W HighCurrent price vs 52-week peak | +40.8% | +99.8% |
| RSI (14)Momentum oscillator 0–100 | 23.7 | 66.2 |
| Avg Volume (50D)Average daily shares traded | 20.3M | 7.1M |
Analyst Outlook
Wall Street rates NVO as "Buy" and JNJ as "Buy". Consensus price targets imply 25.5% upside for NVO (target: $47) vs -7.7% for JNJ (target: $229). For income investors, NVO offers the higher dividend yield at 4.72% vs JNJ's 1.96%.
| Metric | NVONovo Nordisk A/S | JNJJohnson & Johnson |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $47.00 | $229.33 |
| # AnalystsCovering analysts | 39 | 39 |
| Dividend YieldAnnual dividend ÷ price | +4.7% | +2.0% |
| Dividend StreakConsecutive years of raises | 8 | 36 |
| Dividend / ShareAnnual DPS | $11.19 | $4.87 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +0.4% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Novo Nordisk A/S (NVO) | 100 | 192.83 | +92.8% |
| Johnson & Johnson (JNJ) | 100 | 164.8 | +64.8% |
Johnson & Johnson (JNJ) returned +71% over 5 years vs Novo Nordisk A/S (NVO)'s +16%. 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 |
|---|---|---|---|
| Novo Nordisk A/S (NVO) | $111.8B | $297.2B | +165.9% |
| Johnson & Johnson (JNJ) | $71.9B | $88.8B | +23.6% |
Novo Nordisk A/S's revenue grew from $111.8B (2016) to $297.2B (2025) — a 11.5% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Novo Nordisk A/S (NVO) | 33.9% | 33.1% | -2.3% |
| Johnson & Johnson (JNJ) | 23.0% | 15.8% | -31.2% |
Novo Nordisk A/S's net margin went from 34% (2016) to 33% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Novo Nordisk A/S (NVO) | 3.5 | 2.2 | -37.1% |
| Johnson & Johnson (JNJ) | 297.3 | 25 | -91.6% |
Novo Nordisk A/S has traded in a 2x–6x P/E range over 9 years; current trailing P/E is ~10x. 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 |
|---|---|---|---|
| Novo Nordisk A/S (NVO) | 7.48 | 23.03 | +207.9% |
| Johnson & Johnson (JNJ) | 5.93 | 5.79 | -2.4% |
Novo Nordisk A/S's EPS grew from $7.48 (2016) to $23.03 (2025) — a 13% CAGR.
Chart 6Free Cash Flow — 5 Years
Novo Nordisk A/S generated $57B FCF in 2025 (+19% vs 2021). Johnson & Johnson generated $20B FCF in 2024 (+0% vs 2021).
NVO vs JNJ: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NVO or JNJ a better buy right now?
Novo Nordisk A/S (NVO) offers the better valuation at 10.3x trailing P/E (1.8x forward), making it the more compelling value choice. Analysts rate Novo Nordisk A/S (NVO) 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 — NVO or JNJ?
On trailing P/E, Novo Nordisk A/S (NVO) is the cheapest at 10.3x versus Johnson & Johnson at 42.9x. On forward P/E, Novo Nordisk A/S is actually cheaper at 1.8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Novo Nordisk A/S wins at 0.09x 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 — NVO or JNJ?
Over the past 5 years, Johnson & Johnson (JNJ) delivered a total return of +70.8%, compared to +16.1% for Novo Nordisk A/S (NVO). 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 NVO's +76.8%. 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 — NVO or JNJ?
By beta (market sensitivity over 5 years), Johnson & Johnson (JNJ) is the lower-risk stock at 0.06β versus Novo Nordisk A/S's 1.08β — meaning NVO is approximately 1836% 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 67% for Novo Nordisk A/S — giving it more financial flexibility in a downturn.
05Which has better profit margins — NVO or JNJ?
Novo Nordisk A/S (NVO) is the more profitable company, earning 33.1% net margin versus 15.8% for Johnson & Johnson — meaning it keeps 33.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NVO leads at 41.4% versus 24.9% for JNJ. At the gross margin level — before operating expenses — NVO leads at 81.0%, 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 NVO or JNJ 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, Novo Nordisk A/S (NVO) is the more undervalued stock at a PEG of 0.09x versus Johnson & Johnson's 38.22x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Novo Nordisk A/S (NVO) trades at 1.8x forward P/E versus 21.5x for Johnson & Johnson — 19.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NVO: 25.5% to $47.00.
07Which pays a better dividend — NVO or JNJ?
All stocks in this comparison pay dividends. Novo Nordisk A/S (NVO) offers the highest yield at 4.7%, versus 2.0% for Johnson & Johnson (JNJ).
08Is NVO 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%, NVO: +76.8%), 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.
09What are the main differences between NVO 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. In terms of investment character: NVO is a mid-cap deep-value 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.
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