JNJ vs. MRK: Johnson & Johnson vs. Merck Stock Comparison

August 16, 2026

How do Johnson & Johnson (JNJ) and Merck (MRK) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Johnson & Johnson (JNJ) and Merck (MRK) are both classified in the Pharmaceuticals sub-industry within the broader Pharmaceuticals industry, placing them in the closest GICS peer bucket.

Company profile comparison for Johnson & Johnson (JNJ) and Merck (MRK)
Profile Item	JNJ	MRK
Name	Johnson & Johnson	Merck & Co., Inc.
Country/Region	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	627.42 billion USD	335.14 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	January 2, 1962
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

JNJ

MRK

GSPC

Johnson & Johnson (JNJ) vs. Merck (MRK), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Johnson & Johnson (JNJ) and Merck (MRK). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Johnson & Johnson (JNJ) and Merck (MRK). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Johnson & Johnson (JNJ) and Merck (MRK)
Metric	JNJ	MRK
Total Return (1Y)	52.73%	69.62%
Total Return (3Y, Annualized)	17.89%	11.01%
Total Return (5Y, Annualized)	11.20%	15.66%

Risk Profile

Drawdown History

JNJ

MRK

GSPC

Johnson & Johnson (JNJ) vs. Merck (MRK), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Johnson & Johnson (JNJ) and Merck (MRK). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Johnson & Johnson (JNJ) and Merck (MRK)
Metric	JNJ	MRK
Volatility (1Y, Annualized)	18.30%	27.48%
Beta (5Y)	0.24	0.20
Max Drawdown (5Y)	-18.41%	-43.44%
Avg. Volume (3M)	8.14M	10.12M

Risk-Adjusted Performance

Risk-Return Positioning

JNJ and MRK are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Johnson & Johnson (JNJ) and Merck (MRK)
Metric	JNJ	MRK
Sharpe Ratio (1Y)	2.67	2.39
Sortino Ratio (1Y)	4.34	4.18

Profitability

ROE (TTM)

Both Johnson & Johnson (JNJ) at 25.74% and Merck (MRK) at 6.96% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

25.74%

Max: 100.28%
JNJ: 25.74%
Q3: 3.43%
Median: -33.05%
Q1: -62.24%
Min: -157.61%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.96%

Max: 100.28%
MRK: 6.96%
Q3: 3.43%
Median: -33.05%
Q1: -62.24%
Min: -157.61%

Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their ROE against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Net Margin (TTM)

Johnson & Johnson (JNJ) at 21.48% keeps the most of each sales dollar — above its industry’s net margin range — and Merck (MRK) at 4.77% also retains a top-quartile share.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

21.48%

JNJ: 21.48%
Max: 13.44%
Q3: 3.18%
Median: 0.00%
Q1: -4.14%
Min: -14.36%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

4.77%

Max: 13.44%
MRK: 4.77%
Q3: 3.18%
Median: 0.00%
Q1: -4.14%
Min: -14.36%

Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their net margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Operating Margin (TTM)

Merck (MRK) reports a negative operating margin of -0.24%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Johnson & Johnson (JNJ) reports 29.19%, ranking against industry peers normally.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

29.19%

Max: 76.04%
JNJ: 29.19%
Q3: 10.89%
Median: 0.00%
Q1: -122.64%
Min: -308.66%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

-0.24%

Max: 76.04%
Q3: 10.89%
Median: 0.00%
MRK: -0.24%
Q1: -122.64%
Min: -308.66%

Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their operating margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Profitability Metrics

Profitability metrics for Johnson & Johnson (JNJ) and Merck (MRK)
Metric	JNJ	MRK
ROE (TTM)	25.74%	6.96%
ROA (TTM)	8.60%	11.87%
Net Margin (TTM)	21.48%	4.77%
Operating Margin (TTM)	29.19%	-0.24%
Gross Margin (TTM)	68.14%	75.90%

Growth

Revenue Growth

Both Johnson & Johnson (JNJ) at 6.05% and Merck (MRK) at 1.31% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their Revenue Growth across different time periods.

EPS Growth

Johnson & Johnson (JNJ) at 90.50% sits in the top EPS growth quartile, while Merck (MRK) at 8.01% is closer to the peer norm — faster per-share earnings growth for JNJ.

Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Johnson & Johnson (JNJ) and Merck (MRK)
Metric	JNJ	MRK
Revenue Growth (YoY)	6.05%	1.31%
Revenue Growth (3Y CAGR)	5.60%	3.12%
EPS Growth (YoY)	90.50%	8.01%
EPS Growth (3Y CAGR)	17.90%	8.43%

Financial Strength

Current Ratio (MRQ)

Both Johnson & Johnson (JNJ) at 1.09 and Merck (MRK) at 1.32 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.09

Max: 26.78
Q3: 12.43
Median: 5.72
Q1: 2.77
JNJ: 1.09
Min: 0.10

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.32

Max: 26.78
Q3: 12.43
Median: 5.72
Q1: 2.77
MRK: 1.32
Min: 0.10

Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their current ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Debt / Equity (MRQ)

Johnson & Johnson (JNJ) at 0.58 carries an industry-typical debt-to-equity mix, while Merck (MRK) at 1.28 uses more debt funding than most peers.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.58

Max: 1.48
Q3: 0.64
JNJ: 0.58
Median: 0.14
Q1: 0.02
Min: 0.00

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.28

Max: 1.48
MRK: 1.28
Q3: 0.64
Median: 0.14
Q1: 0.02
Min: 0.00

Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their debt-to-equity ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Johnson & Johnson (JNJ) and Merck (MRK)
Metric	JNJ	MRK
Current Ratio (MRQ)	1.09	1.32
Debt / Equity (MRQ)	0.58	1.28
Net Debt / EBITDA	0.81	1.62

Dividends

Dividend Yield (TTM)

Both Johnson & Johnson (JNJ) at 2.00% and Merck (MRK) at 2.45% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.00%

JNJ: 2.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.45%

MRK: 2.45%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their dividend yield against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Payout Ratio (TTM)

Merck (MRK) reports payout ratio above 100% at 268.80%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Johnson & Johnson (JNJ) reports 60.79%, ranking against industry peers normally.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

60.79%

JNJ: 60.79%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

268.80%

MRK: 268.80%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their payout ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Metrics

Dividend metrics for Johnson & Johnson (JNJ) and Merck (MRK)
Metric	JNJ	MRK
Dividend Yield (TTM)	2.00%	2.45%
Dividend Payout Ratio (TTM)	60.79%	268.80%

Valuation

P/E Ratio (TTM)

Johnson & Johnson (JNJ) at 30.20 is near its industry’s usual P/E ratio, while Merck (MRK) at 108.67 sits above its peer range — an unusually expensive price for MRK’s trailing earnings.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

30.20

Max: 77.53
Q3: 41.75
JNJ: 30.20
Median: 27.59
Q1: 15.21
Min: 0.13

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

108.67

MRK: 108.67
Max: 77.53
Q3: 41.75
Median: 27.59
Q1: 15.21
Min: 0.13

Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their P/E ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Johnson & Johnson (JNJ) at 6.41 and Merck (MRK) at 5.03 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.41

Max: 73.14
Q3: 31.51
Median: 7.39
JNJ: 6.41
Q1: 3.47
Min: 0.01

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.03

Max: 73.14
Q3: 31.51
Median: 7.39
MRK: 5.03
Q1: 3.47
Min: 0.01

Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their P/S ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/B Ratio (MRQ)

Johnson & Johnson (JNJ) at 7.38 is valued about in line with its industry on P/B ratio, while Merck (MRK) at 8.00 carries an above-peer premium to book — MRK is pricier on assets.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

7.38

Max: 15.18
Q3: 7.45
JNJ: 7.38
Median: 3.92
Q1: 1.79
Min: -5.47

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

8.00

Max: 15.18
MRK: 8.00
Q3: 7.45
Median: 3.92
Q1: 1.79
Min: -5.47

Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their P/B ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Valuation Metrics

Valuation metrics for Johnson & Johnson (JNJ) and Merck (MRK)
Metric	JNJ	MRK
P/E Ratio (TTM)	30.20	108.67
P/S Ratio (TTM)	6.41	5.03
P/B Ratio (MRQ)	7.38	8.00
Free Cash Flow Yield (TTM)	2.69%	4.53%