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GE vs. JNJ: A Head-to-Head Stock Comparison

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Here’s a clear look at GE and JNJ, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolGEJNJ
Company NameGE AerospaceJohnson & Johnson
CountryUnited StatesUnited States
GICS SectorIndustrialsHealth Care
GICS IndustryIndustrial ConglomeratesPharmaceuticals
Market Capitalization285.11 billion USD420.06 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962January 2, 1962
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GE 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.

GE vs. JNJ: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolGEJNJ
5-Day Price Return-1.16%1.68%
13-Week Price Return22.80%13.16%
26-Week Price Return30.48%13.62%
52-Week Price Return61.12%9.09%
Month-to-Date Return-0.82%5.88%
Year-to-Date Return61.20%20.61%
10-Day Avg. Volume4.24M8.74M
3-Month Avg. Volume6.65M8.75M
3-Month Volatility24.29%20.14%
Beta1.530.38

Profitability

Return on Equity (TTM)

GE

40.51%

Industrial Conglomerates Industry

Max
21.93%
Q3
14.23%
Median
7.81%
Q1
5.91%
Min
-3.58%

GE’s Return on Equity of 40.51% is exceptionally high, placing it well beyond the typical range for the Industrial Conglomerates industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

JNJ

30.39%

Pharmaceuticals Industry

Max
38.59%
Q3
19.84%
Median
11.90%
Q1
5.63%
Min
-9.96%

In the upper quartile for the Pharmaceuticals industry, JNJ’s Return on Equity of 30.39% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

GE vs. JNJ: A comparison of their Return on Equity (TTM) against their respective Industrial Conglomerates and Pharmaceuticals industry benchmarks.

Net Profit Margin (TTM)

GE

18.64%

Industrial Conglomerates Industry

Max
18.70%
Q3
12.58%
Median
9.26%
Q1
3.87%
Min
-2.26%

A Net Profit Margin of 18.64% places GE in the upper quartile for the Industrial Conglomerates industry, signifying strong profitability and more effective cost management than most of its peers.

JNJ

25.00%

Pharmaceuticals Industry

Max
34.51%
Q3
17.73%
Median
12.12%
Q1
5.99%
Min
-7.73%

A Net Profit Margin of 25.00% places JNJ in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.

GE vs. JNJ: A comparison of their Net Profit Margin (TTM) against their respective Industrial Conglomerates and Pharmaceuticals industry benchmarks.

Operating Profit Margin (TTM)

GE

15.53%

Industrial Conglomerates Industry

Max
25.69%
Q3
17.03%
Median
12.85%
Q1
8.81%
Min
-0.73%

GE’s Operating Profit Margin of 15.53% is around the midpoint for the Industrial Conglomerates industry, indicating that its efficiency in managing core business operations is typical for the sector.

JNJ

30.18%

Pharmaceuticals Industry

Max
41.53%
Q3
23.00%
Median
16.24%
Q1
9.24%
Min
-6.94%

An Operating Profit Margin of 30.18% places JNJ in the upper quartile for the Pharmaceuticals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

GE vs. JNJ: A comparison of their Operating Profit Margin (TTM) against their respective Industrial Conglomerates and Pharmaceuticals industry benchmarks.

Profitability at a Glance

SymbolGEJNJ
Return on Equity (TTM)40.51%30.39%
Return on Assets (TTM)6.22%12.16%
Net Profit Margin (TTM)18.64%25.00%
Operating Profit Margin (TTM)15.53%30.18%
Gross Profit Margin (TTM)35.97%67.98%

Financial Strength

Current Ratio (MRQ)

GE

1.04

Industrial Conglomerates Industry

Max
2.19
Q3
1.64
Median
1.38
Q1
1.13
Min
0.61

GE’s Current Ratio of 1.04 falls into the lower quartile for the Industrial Conglomerates industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

JNJ

1.01

Pharmaceuticals Industry

Max
4.49
Q3
2.77
Median
1.74
Q1
1.26
Min
0.11

JNJ’s Current Ratio of 1.01 falls into the lower quartile for the Pharmaceuticals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

GE vs. JNJ: A comparison of their Current Ratio (MRQ) against their respective Industrial Conglomerates and Pharmaceuticals industry benchmarks.

Debt-to-Equity Ratio (MRQ)

GE

0.99

Industrial Conglomerates Industry

Max
2.27
Q3
1.47
Median
0.99
Q1
0.66
Min
0.21

GE’s Debt-to-Equity Ratio of 0.99 is typical for the Industrial Conglomerates industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

JNJ

0.65

Pharmaceuticals Industry

Max
2.44
Q3
1.07
Median
0.42
Q1
0.11
Min
0.00

JNJ’s Debt-to-Equity Ratio of 0.65 is typical for the Pharmaceuticals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

GE vs. JNJ: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Industrial Conglomerates and Pharmaceuticals industry benchmarks.

Interest Coverage Ratio (TTM)

GE

5.01

Industrial Conglomerates Industry

Max
11.17
Q3
8.02
Median
5.88
Q1
2.73
Min
-2.15

GE’s Interest Coverage Ratio of 5.01 is positioned comfortably within the norm for the Industrial Conglomerates industry, indicating a standard and healthy capacity to cover its interest payments.

JNJ

34.01

Pharmaceuticals Industry

Max
103.95
Q3
44.18
Median
9.83
Q1
2.82
Min
-42.71

JNJ’s Interest Coverage Ratio of 34.01 is positioned comfortably within the norm for the Pharmaceuticals industry, indicating a standard and healthy capacity to cover its interest payments.

GE vs. JNJ: A comparison of their Interest Coverage Ratio (TTM) against their respective Industrial Conglomerates and Pharmaceuticals industry benchmarks.

Financial Strength at a Glance

SymbolGEJNJ
Current Ratio (MRQ)1.041.01
Quick Ratio (MRQ)0.730.68
Debt-to-Equity Ratio (MRQ)0.990.65
Interest Coverage Ratio (TTM)5.0134.01

Growth

Revenue Growth

GE vs. JNJ: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

GE vs. JNJ: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

GE

0.44%

Industrial Conglomerates Industry

Max
10.17%
Q3
5.53%
Median
3.14%
Q1
1.88%
Min
0.00%

GE’s Dividend Yield of 0.44% is in the lower quartile for the Industrial Conglomerates industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

JNJ

2.89%

Pharmaceuticals Industry

Max
6.98%
Q3
3.32%
Median
2.13%
Q1
0.14%
Min
0.00%

JNJ’s Dividend Yield of 2.89% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.

GE vs. JNJ: A comparison of their Dividend Yield (TTM) against their respective Industrial Conglomerates and Pharmaceuticals industry benchmarks.

Dividend Payout Ratio (TTM)

GE

16.78%

Industrial Conglomerates Industry

Max
181.91%
Q3
95.57%
Median
50.60%
Q1
35.01%
Min
1.76%

GE’s Dividend Payout Ratio of 16.78% is in the lower quartile for the Industrial Conglomerates industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

JNJ

53.34%

Pharmaceuticals Industry

Max
165.20%
Q3
90.59%
Median
49.13%
Q1
28.91%
Min
0.00%

JNJ’s Dividend Payout Ratio of 53.34% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

GE vs. JNJ: A comparison of their Dividend Payout Ratio (TTM) against their respective Industrial Conglomerates and Pharmaceuticals industry benchmarks.

Dividend at a Glance

SymbolGEJNJ
Dividend Yield (TTM)0.44%2.89%
Dividend Payout Ratio (TTM)16.78%53.34%

Valuation

Price-to-Earnings Ratio (TTM)

GE

38.26

Industrial Conglomerates Industry

Max
36.98
Q3
22.09
Median
12.18
Q1
8.93
Min
5.63

At 38.26, GE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Industrial Conglomerates industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

JNJ

18.47

Pharmaceuticals Industry

Max
42.51
Q3
26.88
Median
19.11
Q1
15.12
Min
0.00

JNJ’s P/E Ratio of 18.47 is within the middle range for the Pharmaceuticals industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

GE vs. JNJ: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Industrial Conglomerates and Pharmaceuticals industry benchmarks.

Price-to-Sales Ratio (TTM)

GE

7.13

Industrial Conglomerates Industry

Max
3.60
Q3
2.10
Median
0.68
Q1
0.42
Min
0.11

With a P/S Ratio of 7.13, GE trades at a valuation that eclipses even the highest in the Industrial Conglomerates industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

JNJ

4.62

Pharmaceuticals Industry

Max
7.55
Q3
4.54
Median
2.11
Q1
1.52
Min
0.00

JNJ’s P/S Ratio of 4.62 is in the upper echelon for the Pharmaceuticals 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.

GE vs. JNJ: A comparison of their Price-to-Sales Ratio (TTM) against their respective Industrial Conglomerates and Pharmaceuticals industry benchmarks.

Price-to-Book Ratio (MRQ)

GE

14.26

Industrial Conglomerates Industry

Max
4.89
Q3
2.51
Median
1.06
Q1
0.60
Min
0.27

At 14.26, GE’s P/B Ratio is at an extreme premium to the Industrial Conglomerates industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

JNJ

4.68

Pharmaceuticals Industry

Max
9.78
Q3
4.96
Median
2.23
Q1
1.46
Min
0.60

JNJ’s P/B Ratio of 4.68 is within the conventional range for the Pharmaceuticals industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

GE vs. JNJ: A comparison of their Price-to-Book Ratio (MRQ) against their respective Industrial Conglomerates and Pharmaceuticals industry benchmarks.

Valuation at a Glance

SymbolGEJNJ
Price-to-Earnings Ratio (TTM)38.2618.47
Price-to-Sales Ratio (TTM)7.134.62
Price-to-Book Ratio (MRQ)14.264.68
Price-to-Free Cash Flow Ratio (TTM)54.0422.56