JNJ vs. MCK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at JNJ and MCK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | JNJ | MCK |
|---|---|---|
| Company Name | Johnson & Johnson | McKesson Corporation |
| Country | United States | United States |
| GICS Sector | Health Care | Health Care |
| GICS Industry | Pharmaceuticals | Health Care Providers & Services |
| Market Capitalization | 448.07 billion USD | 95.16 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1962 | November 10, 1994 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of JNJ and MCK 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 | MCK |
|---|---|---|
| 5-Day Price Return | 4.94% | 1.57% |
| 13-Week Price Return | 21.39% | 5.43% |
| 26-Week Price Return | 14.65% | 16.52% |
| 52-Week Price Return | 14.88% | 58.23% |
| Month-to-Date Return | 4.66% | 12.51% |
| Year-to-Date Return | 28.21% | 35.55% |
| 10-Day Avg. Volume | 10.00M | 0.91M |
| 3-Month Avg. Volume | 8.38M | 0.77M |
| 3-Month Volatility | 18.45% | 27.54% |
| Beta | 0.37 | 0.52 |
Profitability
Return on Equity (TTM)
JNJ
30.39%
Pharmaceuticals Industry
- Max
- 38.59%
- Q3
- 19.84%
- Median
- 11.85%
- Q1
- 5.40%
- Min
- -10.91%
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.
MCK
39.43%
Health Care Providers & Services Industry
- Max
- 24.86%
- Q3
- 15.79%
- Median
- 8.56%
- Q1
- 5.75%
- Min
- -1.64%
MCK’s Return on Equity of 39.43% is exceptionally high, placing it well beyond the typical range for the Health Care Providers & Services 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
25.00%
Pharmaceuticals Industry
- Max
- 40.67%
- Q3
- 19.07%
- Median
- 12.31%
- Q1
- 4.50%
- Min
- -9.91%
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.
MCK
0.84%
Health Care Providers & Services Industry
- Max
- 11.56%
- Q3
- 5.45%
- Median
- 2.83%
- Q1
- 1.13%
- Min
- -1.71%
Falling into the lower quartile for the Health Care Providers & Services industry, MCK’s Net Profit Margin of 0.84% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin (TTM)
JNJ
30.18%
Pharmaceuticals Industry
- Max
- 45.78%
- Q3
- 23.14%
- Median
- 16.68%
- Q1
- 7.98%
- Min
- -7.13%
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.
MCK
1.17%
Health Care Providers & Services Industry
- Max
- 19.08%
- Q3
- 9.66%
- Median
- 4.77%
- Q1
- 2.46%
- Min
- -0.83%
MCK’s Operating Profit Margin of 1.17% is in the lower quartile for the Health Care Providers & Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | JNJ | MCK |
|---|---|---|
| Return on Equity (TTM) | 30.39% | 39.43% |
| Return on Assets (TTM) | 12.16% | 4.22% |
| Net Profit Margin (TTM) | 25.00% | 0.84% |
| Operating Profit Margin (TTM) | 30.18% | 1.17% |
| Gross Profit Margin (TTM) | 67.98% | 3.46% |
Financial Strength
Current Ratio (MRQ)
JNJ
1.01
Pharmaceuticals Industry
- Max
- 4.65
- Q3
- 2.64
- Median
- 1.85
- Q1
- 1.26
- Min
- 0.78
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.
MCK
0.88
Health Care Providers & Services Industry
- Max
- 2.00
- Q3
- 1.51
- Median
- 1.29
- Q1
- 0.92
- Min
- 0.14
MCK’s Current Ratio of 0.88 falls into the lower quartile for the Health Care Providers & Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
JNJ
0.65
Pharmaceuticals Industry
- Max
- 1.75
- Q3
- 0.82
- Median
- 0.35
- Q1
- 0.13
- 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.
MCK
1.29
Health Care Providers & Services Industry
- Max
- 2.29
- Q3
- 1.24
- Median
- 0.74
- Q1
- 0.50
- Min
- 0.00
MCK’s leverage is in the upper quartile of the Health Care Providers & Services industry, with a Debt-to-Equity Ratio of 1.29. 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
- 103.95
- Q3
- 43.60
- Median
- 9.83
- Q1
- 2.37
- 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.
MCK
17.45
Health Care Providers & Services Industry
- Max
- 14.47
- Q3
- 7.50
- Median
- 4.52
- Q1
- 2.12
- Min
- -4.44
With an Interest Coverage Ratio of 17.45, MCK demonstrates a superior capacity to service its debt, placing it well above the typical range for the Health Care Providers & Services industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | JNJ | MCK |
|---|---|---|
| Current Ratio (MRQ) | 1.01 | 0.88 |
| Quick Ratio (MRQ) | 0.68 | 0.48 |
| Debt-to-Equity Ratio (MRQ) | 0.65 | 1.29 |
| Interest Coverage Ratio (TTM) | 34.01 | 17.45 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
JNJ
2.72%
Pharmaceuticals Industry
- Max
- 7.14%
- Q3
- 3.45%
- Median
- 2.17%
- Q1
- 0.33%
- Min
- 0.00%
JNJ’s Dividend Yield of 2.72% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.
MCK
0.37%
Health Care Providers & Services Industry
- Max
- 5.93%
- Q3
- 2.59%
- Median
- 1.35%
- Q1
- 0.00%
- Min
- 0.00%
MCK’s Dividend Yield of 0.37% is consistent with its peers in the Health Care Providers & Services industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
JNJ
53.34%
Pharmaceuticals Industry
- Max
- 199.58%
- Q3
- 97.17%
- Median
- 53.47%
- Q1
- 22.97%
- 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.
MCK
11.16%
Health Care Providers & Services Industry
- Max
- 185.33%
- Q3
- 74.82%
- Median
- 36.00%
- Q1
- 0.00%
- Min
- 0.00%
MCK’s Dividend Payout Ratio of 11.16% is within the typical range for the Health Care Providers & Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | JNJ | MCK |
|---|---|---|
| Dividend Yield (TTM) | 2.72% | 0.37% |
| Dividend Payout Ratio (TTM) | 53.34% | 11.16% |
Valuation
Price-to-Earnings Ratio (TTM)
JNJ
19.60
Pharmaceuticals Industry
- Max
- 45.19
- Q3
- 27.91
- Median
- 20.59
- Q1
- 15.08
- Min
- 3.79
JNJ’s P/E Ratio of 19.60 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.
MCK
30.35
Health Care Providers & Services Industry
- Max
- 40.02
- Q3
- 29.75
- Median
- 21.09
- Q1
- 14.18
- Min
- 7.05
A P/E Ratio of 30.35 places MCK in the upper quartile for the Health Care Providers & Services 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
4.90
Pharmaceuticals Industry
- Max
- 8.87
- Q3
- 4.56
- Median
- 2.14
- Q1
- 1.58
- Min
- 0.11
JNJ’s P/S Ratio of 4.90 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.
MCK
0.25
Health Care Providers & Services Industry
- Max
- 3.15
- Q3
- 1.87
- Median
- 0.74
- Q1
- 0.27
- Min
- 0.09
In the lower quartile for the Health Care Providers & Services industry, MCK’s P/S Ratio of 0.25 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
JNJ
4.68
Pharmaceuticals Industry
- Max
- 9.78
- Q3
- 4.99
- Median
- 2.48
- Q1
- 1.53
- Min
- 0.59
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.
MCK
4.06
Health Care Providers & Services Industry
- Max
- 7.33
- Q3
- 4.45
- Median
- 2.52
- Q1
- 1.15
- Min
- 0.66
MCK’s P/B Ratio of 4.06 is within the conventional range for the Health Care Providers & Services 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.
Valuation at a Glance
| Symbol | JNJ | MCK |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 19.60 | 30.35 |
| Price-to-Sales Ratio (TTM) | 4.90 | 0.25 |
| Price-to-Book Ratio (MRQ) | 4.68 | 4.06 |
| Price-to-Free Cash Flow Ratio (TTM) | 23.95 | 10.28 |