AMZN vs. JNJ: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AMZN and JNJ, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AMZN’s market capitalization of 2,371.81 billion USD is substantially larger than JNJ’s 375.37 billion USD, indicating a significant difference in their market valuations.
AMZN’s beta of 1.33 points to significantly higher volatility compared to JNJ (beta: 0.41), suggesting AMZN has greater potential for both gains and losses relative to market movements.
| Symbol | AMZN | JNJ |
|---|---|---|
| Company Name | Amazon.com, Inc. | Johnson & Johnson |
| Country | US | US |
| Sector | Consumer Cyclical | Healthcare |
| Industry | Specialty Retail | Drug Manufacturers - General |
| CEO | Andrew R. Jassy | Joaquin Duato |
| Price | 223.41 USD | 156.01 USD |
| Market Cap | 2,371.81 billion USD | 375.37 billion USD |
| Beta | 1.33 | 0.41 |
| Exchange | NASDAQ | NYSE |
| IPO Date | May 15, 1997 | January 2, 1943 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AMZN 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
AMZN
24.26%
Specialty Retail Industry
- Max
- 70.52%
- Q3
- 29.03%
- Median
- 10.90%
- Q1
- -7.86%
- Min
- -57.43%
AMZN’s Return on Equity of 24.26% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.
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
AMZN
13.10%
Specialty Retail Industry
- Max
- 29.46%
- Q3
- 13.75%
- Median
- 8.05%
- Q1
- 0.80%
- Min
- -17.95%
AMZN’s Return on Invested Capital of 13.10% is in line with the norm for the Specialty Retail 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
AMZN
10.14%
Specialty Retail Industry
- Max
- 19.78%
- Q3
- 8.49%
- Median
- 3.43%
- Q1
- -0.69%
- Min
- -9.88%
A Net Profit Margin of 10.14% places AMZN in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.
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
AMZN
11.02%
Specialty Retail Industry
- Max
- 24.47%
- Q3
- 11.10%
- Median
- 5.85%
- Q1
- 0.66%
- Min
- -12.62%
AMZN’s Operating Profit Margin of 11.02% is around the midpoint for the Specialty Retail 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 | AMZN | JNJ |
|---|---|---|
| Return on Equity (TTM) | 24.26% | 29.95% |
| Return on Assets (TTM) | 10.25% | 11.26% |
| Return on Invested Capital (TTM) | 13.10% | 12.01% |
| Net Profit Margin (TTM) | 10.14% | 24.41% |
| Operating Profit Margin (TTM) | 11.02% | 24.71% |
| Gross Profit Margin (TTM) | 49.16% | 68.30% |
Financial Strength
Current Ratio
AMZN
1.05
Specialty Retail Industry
- Max
- 3.24
- Q3
- 1.99
- Median
- 1.42
- Q1
- 1.02
- Min
- 0.54
AMZN’s Current Ratio of 1.05 aligns with the median group of the Specialty Retail 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
AMZN
0.44
Specialty Retail Industry
- Max
- 2.72
- Q3
- 1.42
- Median
- 0.87
- Q1
- 0.35
- Min
- 0.01
AMZN’s Debt-to-Equity Ratio of 0.44 is typical for the Specialty Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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
AMZN
31.13
Specialty Retail Industry
- Max
- 37.34
- Q3
- 17.19
- Median
- 4.28
- Q1
- 0.11
- Min
- -23.60
AMZN’s Interest Coverage Ratio of 31.13 is in the upper quartile for the Specialty Retail industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
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 | AMZN | JNJ |
|---|---|---|
| Current Ratio (TTM) | 1.05 | 1.26 |
| Quick Ratio (TTM) | 0.84 | 1.03 |
| Debt-to-Equity Ratio (TTM) | 0.44 | 0.67 |
| Debt-to-Asset Ratio (TTM) | 0.21 | 0.27 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.50 | 0.40 |
| Interest Coverage Ratio (TTM) | 31.13 | 27.46 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AMZN 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
AMZN
0.00%
Specialty Retail Industry
- Max
- 5.54%
- Q3
- 1.52%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AMZN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
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
AMZN
0.00%
Specialty Retail Industry
- Max
- 177.64%
- Q3
- 9.49%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AMZN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
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 | AMZN | JNJ |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 3.22% |
| Dividend Payout Ratio (TTM) | 0.00% | 54.76% |
Valuation
Price-to-Earnings Ratio
AMZN
35.92
Specialty Retail Industry
- Max
- 81.45
- Q3
- 42.51
- Median
- 25.40
- Q1
- 12.72
- Min
- 1.88
AMZN’s P/E Ratio of 35.92 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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
AMZN
1.72
Specialty Retail Industry
- Max
- 5.90
- Q3
- 2.79
- Median
- 1.76
- Q1
- 0.69
- Min
- 0.00
AMZN’s Forward PEG Ratio of 1.72 is within the middle range of its peers in the Specialty Retail industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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
AMZN
3.65
Specialty Retail Industry
- Max
- 5.26
- Q3
- 2.60
- Median
- 1.29
- Q1
- 0.41
- Min
- 0.06
AMZN’s P/S Ratio of 3.65 is in the upper echelon for the Specialty Retail 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
AMZN
7.74
Specialty Retail Industry
- Max
- 12.73
- Q3
- 6.96
- Median
- 3.28
- Q1
- 1.42
- Min
- 0.24
AMZN’s P/B Ratio of 7.74 is in the upper tier for the Specialty Retail industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
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 | AMZN | JNJ |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 35.92 | 17.21 |
| Forward PEG Ratio (TTM) | 1.72 | 2.72 |
| Price-to-Sales Ratio (P/S, TTM) | 3.65 | 4.20 |
| Price-to-Book Ratio (P/B, TTM) | 7.74 | 4.80 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 113.97 | 20.21 |
| EV-to-EBITDA (TTM) | 18.07 | 11.21 |
| EV-to-Sales (TTM) | 3.75 | 4.36 |