AMGN vs. JNJ: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AMGN and JNJ, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
JNJ’s market capitalization of 375.37 billion USD is significantly greater than AMGN’s 160.37 billion USD, highlighting its more substantial market valuation.
With betas of 0.50 for AMGN and 0.41 for JNJ, both stocks show similar sensitivity to overall market movements.
| Symbol | AMGN | JNJ |
|---|---|---|
| Company Name | Amgen Inc. | Johnson & Johnson |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Drug Manufacturers - General | Drug Manufacturers - General |
| CEO | Robert A. Bradway | Joaquin Duato |
| Price | 298.24 USD | 156.01 USD |
| Market Cap | 160.37 billion USD | 375.37 billion USD |
| Beta | 0.50 | 0.41 |
| Exchange | NASDAQ | NYSE |
| IPO Date | June 17, 1983 | January 2, 1943 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AMGN and JNJ by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AMGN
92.94%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 76.92%
- Median
- 30.71%
- Q1
- 8.97%
- Min
- -14.85%
In the upper quartile for the Drug Manufacturers - General industry, AMGN’s Return on Equity of 92.94% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
JNJ
29.95%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 76.92%
- Median
- 30.71%
- Q1
- 8.97%
- Min
- -14.85%
JNJ’s Return on Equity of 29.95% is on par with the norm for the Drug Manufacturers - General industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AMGN
9.53%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
AMGN’s Return on Invested Capital of 9.53% is in line with the norm for the Drug Manufacturers - General industry, reflecting a standard level of efficiency in generating profits from its capital base.
JNJ
12.01%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
JNJ’s Return on Invested Capital of 12.01% is in line with the norm for the Drug Manufacturers - General industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
AMGN
17.39%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
AMGN’s Net Profit Margin of 17.39% is aligned with the median group of its peers in the Drug Manufacturers - General industry. This indicates its ability to convert revenue into profit is typical for the sector.
JNJ
24.41%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
A Net Profit Margin of 24.41% places JNJ in the upper quartile for the Drug Manufacturers - General industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AMGN
21.82%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
AMGN’s Operating Profit Margin of 21.82% is around the midpoint for the Drug Manufacturers - General industry, indicating that its efficiency in managing core business operations is typical for the sector.
JNJ
24.71%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
JNJ’s Operating Profit Margin of 24.71% is around the midpoint for the Drug Manufacturers - General industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AMGN | JNJ |
|---|---|---|
| Return on Equity (TTM) | 92.94% | 29.95% |
| Return on Assets (TTM) | 6.64% | 11.26% |
| Return on Invested Capital (TTM) | 9.53% | 12.01% |
| Net Profit Margin (TTM) | 17.39% | 24.41% |
| Operating Profit Margin (TTM) | 21.82% | 24.71% |
| Gross Profit Margin (TTM) | 63.00% | 68.30% |
Financial Strength
Current Ratio
AMGN
1.17
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.37
- Median
- 1.26
- Q1
- 0.87
- Min
- 0.39
AMGN’s Current Ratio of 1.17 aligns with the median group of the Drug Manufacturers - General industry, indicating that its short-term liquidity is in line with its sector peers.
JNJ
1.26
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.37
- Median
- 1.26
- Q1
- 0.87
- Min
- 0.39
JNJ’s Current Ratio of 1.26 aligns with the median group of the Drug Manufacturers - General industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AMGN
9.24
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.44
- Median
- 0.86
- Q1
- 0.68
- Min
- 0.09
With a Debt-to-Equity Ratio of 9.24, AMGN operates with exceptionally high leverage compared to the Drug Manufacturers - General industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
JNJ
0.67
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.44
- Median
- 0.86
- Q1
- 0.68
- Min
- 0.09
Falling into the lower quartile for the Drug Manufacturers - General industry, JNJ’s Debt-to-Equity Ratio of 0.67 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
AMGN
3.19
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
In the lower quartile for the Drug Manufacturers - General industry, AMGN’s Interest Coverage Ratio of 3.19 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
JNJ
27.46
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
JNJ’s Interest Coverage Ratio of 27.46 is in the upper quartile for the Drug Manufacturers - General industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AMGN | JNJ |
|---|---|---|
| Current Ratio (TTM) | 1.17 | 1.26 |
| Quick Ratio (TTM) | 0.88 | 1.03 |
| Debt-to-Equity Ratio (TTM) | 9.24 | 0.67 |
| Debt-to-Asset Ratio (TTM) | 0.64 | 0.27 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.92 | 0.40 |
| Interest Coverage Ratio (TTM) | 3.19 | 27.46 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AMGN and JNJ. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AMGN
3.10%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.10%
- Median
- 3.34%
- Q1
- 1.89%
- Min
- 0.00%
AMGN’s Dividend Yield of 3.10% is consistent with its peers in the Drug Manufacturers - General industry, providing a dividend return that is standard for its sector.
JNJ
3.22%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.10%
- Median
- 3.34%
- Q1
- 1.89%
- Min
- 0.00%
JNJ’s Dividend Yield of 3.22% is consistent with its peers in the Drug Manufacturers - General industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AMGN
82.64%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 78.91%
- Median
- 60.27%
- Q1
- 43.74%
- Min
- 0.00%
AMGN’s Dividend Payout Ratio of 82.64% is in the upper quartile for the Drug Manufacturers - General industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
JNJ
54.76%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 78.91%
- Median
- 60.27%
- Q1
- 43.74%
- Min
- 0.00%
JNJ’s Dividend Payout Ratio of 54.76% is within the typical range for the Drug Manufacturers - General industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AMGN | JNJ |
|---|---|---|
| Dividend Yield (TTM) | 3.10% | 3.22% |
| Dividend Payout Ratio (TTM) | 82.64% | 54.76% |
Valuation
Price-to-Earnings Ratio
AMGN
27.04
Drug Manufacturers - General Industry
- Max
- 27.96
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
A P/E Ratio of 27.04 places AMGN in the upper quartile for the Drug Manufacturers - General industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
JNJ
17.21
Drug Manufacturers - General Industry
- Max
- 27.96
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
JNJ’s P/E Ratio of 17.21 is within the middle range for the Drug Manufacturers - General industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AMGN
7.57
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
AMGN’s Forward PEG Ratio of 7.57 is exceptionally high for the Drug Manufacturers - General industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
JNJ
2.72
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
JNJ’s Forward PEG Ratio of 2.72 is within the middle range of its peers in the Drug Manufacturers - General industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
AMGN
4.70
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
AMGN’s P/S Ratio of 4.70 is in the upper echelon for the Drug Manufacturers - General industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
JNJ
4.20
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
JNJ’s P/S Ratio of 4.20 aligns with the market consensus for the Drug Manufacturers - General industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
AMGN
25.85
Drug Manufacturers - General Industry
- Max
- 7.80
- Q3
- 7.80
- Median
- 5.30
- Q1
- 4.06
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
JNJ
4.80
Drug Manufacturers - General Industry
- Max
- 7.80
- Q3
- 7.80
- Median
- 5.30
- Q1
- 4.06
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
Valuation at a Glance
| Symbol | AMGN | JNJ |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 27.04 | 17.21 |
| Forward PEG Ratio (TTM) | 7.57 | 2.72 |
| Price-to-Sales Ratio (P/S, TTM) | 4.70 | 4.20 |
| Price-to-Book Ratio (P/B, TTM) | 25.85 | 4.80 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 14.69 | 20.21 |
| EV-to-EBITDA (TTM) | 16.88 | 11.21 |
| EV-to-Sales (TTM) | 6.12 | 4.36 |