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Johnson & Johnson (JNJ) vs. Merck (MRK)

This page compares Johnson & Johnson (JNJ) with Merck (MRK) using performance and risk, profitability, financial strength, growth, dividends, and valuation metrics.

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.

SymbolJNJMRK
NameJohnson & JohnsonMerck & Co., Inc.
Country/RegionUnited StatesUnited States
GICS SectorHealth CareHealth Care
GICS Industry GroupPharmaceuticals, Biotechnology & Life SciencesPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticalsPharmaceuticals
GICS Sub-IndustryPharmaceuticalsPharmaceuticals
Market Capitalization542.42 billion USD293.22 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962January 2, 1962
Security TypeCommon StockCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Both Johnson & Johnson (JNJ) at 26.11 and Merck (MRK) at 33.44 post Price-to-Earnings Ratio (TTM) near the typical industry midpoint — neither company stands out strongly from peers on trailing earnings multiple.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

26.11

Max
77.51
Q3
42.45
Median
25.47
Q1
14.64
Min
1.58

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

33.44

Max
77.51
Q3
42.45
Median
25.47
Q1
14.64
Min
1.58
Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their Price-to-Earnings Ratio (TTM) against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Price-to-Sales Ratio (TTM)

On Price-to-Sales Ratio (TTM), both Johnson & Johnson (JNJ) at 5.63 and Merck (MRK) at 4.46 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.63

Max
60.01
Q3
26.95
Median
6.83
Q1
3.43
Min
0.01

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

4.46

Max
60.01
Q3
26.95
Median
6.83
Q1
3.43
Min
0.01
Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their Price-to-Sales Ratio (TTM) against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Price-to-Book Ratio (MRQ)

Both Johnson & Johnson (JNJ) at 6.68 and Merck (MRK) at 6.39 carry a premium to book value versus peers, sitting in the upper Price-to-Book Ratio (MRQ) quartile of their industries.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.68

Max
12.80
Q3
6.35
Median
3.45
Q1
1.69
Min
-4.09

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.39

Max
12.80
Q3
6.35
Median
3.45
Q1
1.69
Min
-4.09
Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their Price-to-Book Ratio (MRQ) against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Valuation at a Glance

SymbolJNJMRK
Price-to-Earnings Ratio (TTM)26.1133.44
Price-to-Sales Ratio (TTM)5.634.46
Price-to-Book Ratio (MRQ)6.686.39
Free Cash Flow Yield2.31%4.79%

Profitability

Return on Equity (TTM)

Both Johnson & Johnson (JNJ) at 26.42% and Merck (MRK) at 18.94% rank in the top quartile for Return on Equity (TTM) among industry peers, indicating strong returns on shareholders’ equity.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

26.42%

Max
94.73%
Q3
2.50%
Median
-32.62%
Q1
-61.80%
Min
-157.07%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

18.94%

Max
94.73%
Q3
2.50%
Median
-32.62%
Q1
-61.80%
Min
-157.07%
Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their Return on Equity (TTM) against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Net Profit Margin (TTM)

Both Johnson & Johnson (JNJ) at 21.83% and Merck (MRK) at 13.59% keep an unusually large share of revenue as bottom-line profit — each Net Profit Margin (TTM) clears its industry’s benchmark range.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

21.83%

Max
11.21%
Q3
3.34%
Median
0.00%
Q1
-2.04%
Min
-9.05%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

13.59%

Max
11.21%
Q3
3.34%
Median
0.00%
Q1
-2.04%
Min
-9.05%
Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their Net Profit Margin (TTM) against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Operating Profit Margin (TTM)

Both Johnson & Johnson (JNJ) at 27.41% and Merck (MRK) at 38.60% squeeze more operating profit from each sales dollar than most peers, ranking in the top Operating Profit Margin (TTM) quartile of their industries.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

27.41%

Max
100.30%
Q3
3.47%
Median
0.00%
Q1
-138.44%
Min
-337.81%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

38.60%

Max
100.30%
Q3
3.47%
Median
0.00%
Q1
-138.44%
Min
-337.81%
Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their Operating Profit Margin (TTM) against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Profitability at a Glance

SymbolJNJMRK
Return on Equity (TTM)26.42%18.94%
Return on Assets (TTM)8.42%12.58%
Net Profit Margin (TTM)21.83%13.59%
Operating Profit Margin (TTM)27.41%38.60%
Gross Profit Margin (TTM)68.04%76.73%

Growth

Revenue Growth

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

Revenue Growth at a Glance

SymbolJNJMRK
1-Year Revenue Growth6.05%1.31%
3-Year Revenue CAGR5.60%3.12%

EPS Growth

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

EPS Growth at a Glance

SymbolJNJMRK
1-Year EPS Growth90.50%8.01%
3-Year EPS CAGR17.90%8.43%

Financial Strength

Current Ratio (MRQ)

Both Johnson & Johnson (JNJ) at 1.03 and Merck (MRK) at 1.30 run Current Ratio (MRQ) in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.03

Max
24.81
Q3
11.93
Median
5.83
Q1
2.73
Min
0.23

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.30

Max
24.81
Q3
11.93
Median
5.83
Q1
2.73
Min
0.23
Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their Current Ratio (MRQ) against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Debt-to-Equity Ratio (MRQ)

Both Johnson & Johnson (JNJ) at 0.68 and Merck (MRK) at 1.07 run Debt-to-Equity Ratio (MRQ) in the higher-leverage quartile of industry peers, indicating more debt relative to equity than typical competitors.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.68

Max
1.60
Q3
0.67
Median
0.15
Q1
0.02
Min
0.00

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.07

Max
1.60
Q3
0.67
Median
0.15
Q1
0.02
Min
0.00
Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their Debt-to-Equity Ratio (MRQ) against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Financial Strength at a Glance

SymbolJNJMRK
Current Ratio (MRQ)1.031.30
Debt-to-Equity Ratio (MRQ)0.681.07
Net Debt / EBITDA0.961.47

Dividends

Dividend Yield (TTM)

Both Johnson & Johnson (JNJ) at 2.38% and Merck (MRK) at 2.86% report Dividend Yield (TTM) near their industry mid-ranges, so neither company stands out strongly from peers on cash yield relative to share price.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.38%

Max
6.57%
Q3
3.18%
Median
1.97%
Q1
0.62%
Min
0.27%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.86%

Max
6.57%
Q3
3.18%
Median
1.97%
Q1
0.62%
Min
0.27%
Johnson & Johnson (JNJ) vs. Merck (MRK): A comparison of their Dividend Yield (TTM) against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Payout Ratio (TTM)

Both Johnson & Johnson (JNJ) at 60.25% and Merck (MRK) at 93.52% post Dividend Payout Ratio (TTM) outside their industries’ typical mid-range — either leaning toward more retention or more distribution than the industry median.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

60.25%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

93.52%

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 Payout Ratio (TTM) against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividends at a Glance

SymbolJNJMRK
Dividend Yield (TTM)2.38%2.86%
Dividend Payout Ratio (TTM)60.25%93.52%

Performance & Risk

JNJ
MRK
Loading price history…
Johnson & Johnson (JNJ) vs. Merck (MRK): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Performance & Risk at a Glance

SymbolJNJMRK
1-Year Return50.38%61.04%
1-Year Volatility16.69%26.79%
Beta0.270.20
3-Month Avg. Volume7.70M9.54M