JNJ vs. LLY: A Head-to-Head Stock Comparison
Here's a clear look at JNJ and LLY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | JNJ | LLY |
|---|---|---|
| Company Name | Johnson & Johnson | Eli Lilly and Company |
| Country | United States | United States |
| GICS Sector | Health Care | Health Care |
| GICS Industry Group | Pharmaceuticals, Biotechnology & Life Sciences | Pharmaceuticals, Biotechnology & Life Sciences |
| GICS Industry | Pharmaceuticals | Pharmaceuticals |
| GICS Sub-Industry | Pharmaceuticals | Pharmaceuticals |
| Market Capitalization | 579.46 billion USD | 786.04 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1962 | June 1, 1972 |
| Security Type | Common Stock | Common Stock |
JNJ's market capitalization stands at 579.46 billion USD, while LLY's is 786.04 billion USD, indicating their market valuations are broadly comparable.
Historical Performance
This chart compares the performance of JNJ and LLY 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.
Historical Performance at a Glance
| Symbol | JNJ | LLY |
|---|---|---|
| 5-Day Price Return | 2.14% | -3.55% |
| 13-Week Price Return | 16.85% | -18.05% |
| 26-Week Price Return | 38.02% | 16.33% |
| 52-Week Price Return | 47.40% | 6.88% |
| Month-to-Date Return | -3.21% | -16.52% |
| Year-to-Date Return | 16.19% | -18.28% |
| 10-Day Avg. Volume | 8.19M | 3.10M |
| 3-Month Avg. Volume | 8.96M | 3.20M |
| 3-Month Volatility | 15.82% | 40.07% |
| Beta | 0.35 | 0.58 |
LLY carries a higher beta at 0.58, indicating it's more sensitive to market moves, while JNJ (beta: 0.35) exhibits greater stability.
Profitability
Return on Equity (TTM)
JNJ
33.78%
Pharmaceuticals Industry
- Max
- 39.28%
- Q3
- 20.27%
- Median
- 12.92%
- Q1
- 6.34%
- Min
- -14.55%
In the upper quartile for the Pharmaceuticals industry, JNJ's Return on Equity of 33.78% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
LLY
97.85%
Pharmaceuticals Industry
- Max
- 39.28%
- Q3
- 20.27%
- Median
- 12.92%
- Q1
- 6.34%
- Min
- -14.55%
LLY's Return on Equity of 97.85% is exceptionally high, placing it well beyond the typical range for the Pharmaceuticals industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
JNJ
28.46%
Pharmaceuticals Industry
- Max
- 41.87%
- Q3
- 22.21%
- Median
- 14.64%
- Q1
- 9.09%
- Min
- -8.35%
A Net Profit Margin of 28.46% places JNJ in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.
LLY
31.66%
Pharmaceuticals Industry
- Max
- 41.87%
- Q3
- 22.21%
- Median
- 14.64%
- Q1
- 9.09%
- Min
- -8.35%
A Net Profit Margin of 31.66% places LLY in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
JNJ
34.59%
Pharmaceuticals Industry
- Max
- 42.93%
- Q3
- 25.68%
- Median
- 18.69%
- Q1
- 12.70%
- Min
- -4.35%
An Operating Profit Margin of 34.59% 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.
LLY
40.35%
Pharmaceuticals Industry
- Max
- 42.93%
- Q3
- 25.68%
- Median
- 18.69%
- Q1
- 12.70%
- Min
- -4.35%
An Operating Profit Margin of 40.35% places LLY 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.
Profitability at a Glance
| Symbol | JNJ | LLY |
|---|---|---|
| Return on Equity (TTM) | 33.78% | 97.85% |
| Return on Assets (TTM) | 13.76% | 19.76% |
| Net Profit Margin (TTM) | 28.46% | 31.66% |
| Operating Profit Margin (TTM) | 34.59% | 40.35% |
| Gross Profit Margin (TTM) | 67.92% | 83.04% |
Financial Strength
Current Ratio (MRQ)
JNJ
1.03
Pharmaceuticals Industry
- Max
- 6.79
- Q3
- 3.64
- Median
- 2.17
- Q1
- 1.38
- Min
- 0.80
JNJ's Current Ratio of 1.03 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.
LLY
1.58
Pharmaceuticals Industry
- Max
- 6.79
- Q3
- 3.64
- Median
- 2.17
- Q1
- 1.38
- Min
- 0.80
LLY's Current Ratio of 1.58 aligns with the median group of the Pharmaceuticals industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
JNJ
0.59
Pharmaceuticals Industry
- Max
- 1.60
- Q3
- 0.76
- Median
- 0.28
- Q1
- 0.03
- Min
- 0.00
JNJ's Debt-to-Equity Ratio of 0.59 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.
LLY
1.60
Pharmaceuticals Industry
- Max
- 1.60
- Q3
- 0.76
- Median
- 0.28
- Q1
- 0.03
- Min
- 0.00
LLY's leverage is in the upper quartile of the Pharmaceuticals industry, with a Debt-to-Equity Ratio of 1.60. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
JNJ
34.01
Pharmaceuticals Industry
- Max
- 154.61
- Q3
- 67.33
- Median
- 13.25
- Q1
- 2.96
- Min
- -27.02
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.
LLY
41.08
Pharmaceuticals Industry
- Max
- 154.61
- Q3
- 67.33
- Median
- 13.25
- Q1
- 2.96
- Min
- -27.02
LLY's Interest Coverage Ratio of 41.08 is positioned comfortably within the norm for the Pharmaceuticals industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | JNJ | LLY |
|---|---|---|
| Current Ratio (MRQ) | 1.03 | 1.58 |
| Quick Ratio (MRQ) | 0.69 | 0.78 |
| Debt-to-Equity Ratio (MRQ) | 0.59 | 1.60 |
| Interest Coverage Ratio (TTM) | 34.01 | 41.08 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | JNJ | LLY |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 9.08% | 42.56% |
| Revenue Growth (TTM vs Prior YoY) | 6.05% | 44.70% |
| 3-Year Revenue CAGR | 5.60% | 31.69% |
| 5-Year Revenue CAGR | 2.67% | 21.58% |
EPS Growth
EPS Growth at a Glance
| Symbol | JNJ | LLY |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 48.50% | 51.33% |
| EPS Growth (TTM vs Prior YoY) | 90.56% | 95.89% |
| 3-Year EPS CAGR | 17.88% | 49.25% |
| 5-Year EPS CAGR | 14.90% | 27.59% |
Dividend
Dividend Yield (TTM)
JNJ
2.14%
Pharmaceuticals Industry
- Max
- 6.35%
- Q3
- 3.00%
- Median
- 1.84%
- Q1
- 0.00%
- Min
- 0.00%
JNJ's Dividend Yield of 2.14% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.
LLY
0.65%
Pharmaceuticals Industry
- Max
- 6.35%
- Q3
- 3.00%
- Median
- 1.84%
- Q1
- 0.00%
- Min
- 0.00%
LLY's Dividend Yield of 0.65% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
JNJ
46.19%
Pharmaceuticals Industry
- Max
- 188.03%
- Q3
- 80.63%
- Median
- 44.08%
- Q1
- 0.00%
- Min
- 0.00%
JNJ's Dividend Payout Ratio of 46.19% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
LLY
26.09%
Pharmaceuticals Industry
- Max
- 188.03%
- Q3
- 80.63%
- Median
- 44.08%
- Q1
- 0.00%
- Min
- 0.00%
LLY's Dividend Payout Ratio of 26.09% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | JNJ | LLY |
|---|---|---|
| Dividend Yield (TTM) | 2.14% | 0.65% |
| Dividend Payout Ratio (TTM) | 46.19% | 26.09% |
Valuation
Price-to-Earnings Ratio (TTM)
JNJ
21.62
Pharmaceuticals Industry
- Max
- 40.21
- Q3
- 26.28
- Median
- 18.77
- Q1
- 14.14
- Min
- 3.46
JNJ's P/E Ratio of 21.62 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.
LLY
40.21
Pharmaceuticals Industry
- Max
- 40.21
- Q3
- 26.28
- Median
- 18.77
- Q1
- 14.14
- Min
- 3.46
A P/E Ratio of 40.21 places LLY in the upper quartile for the Pharmaceuticals industry. This high valuation relative to peers suggests the market holds elevated expectations for the company's future growth.
Price-to-Sales Ratio (TTM)
JNJ
6.15
Pharmaceuticals Industry
- Max
- 7.19
- Q3
- 4.85
- Median
- 2.51
- Q1
- 1.94
- Min
- 0.83
JNJ's P/S Ratio of 6.15 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.
LLY
12.73
Pharmaceuticals Industry
- Max
- 7.19
- Q3
- 4.85
- Median
- 2.51
- Q1
- 1.94
- Min
- 0.83
With a P/S Ratio of 12.73, LLY trades at a valuation that eclipses even the highest in the Pharmaceuticals industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
JNJ
6.13
Pharmaceuticals Industry
- Max
- 10.12
- Q3
- 5.02
- Median
- 2.39
- Q1
- 1.54
- Min
- 0.63
JNJ's P/B Ratio of 6.13 is in the upper tier for the Pharmaceuticals 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.
LLY
38.29
Pharmaceuticals Industry
- Max
- 10.12
- Q3
- 5.02
- Median
- 2.39
- Q1
- 1.54
- Min
- 0.63
At 38.29, LLY's P/B Ratio is at an extreme premium to the Pharmaceuticals 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.
Valuation at a Glance
| Symbol | JNJ | LLY |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 21.62 | 40.21 |
| Price-to-Sales Ratio (TTM) | 6.15 | 12.73 |
| Price-to-Book Ratio (MRQ) | 6.13 | 38.29 |
| Price-to-Free Cash Flow Ratio (TTM) | 29.42 | 109.69 |