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

July 7, 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	624.26 billion USD	313.12 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

Loading price history…

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

Calendar-Year Returns

Loading price history…

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)	70.38%	61.89%
Total Return (3Y, Annualized)	20.54%	7.56%
Total Return (5Y, Annualized)	12.19%	13.66%

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

Loading price history…

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)	18.34%	27.90%
Beta (5Y)	0.24	0.19
Max Drawdown (5Y)	-18.41%	-43.44%
Avg. Volume (3M)	8.12M	10.40M

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)	3.62	2.08
Sortino Ratio (1Y)	6.61	3.57

Profitability

ROE (TTM)

Both Johnson & Johnson (JNJ) at 26.42% and Merck (MRK) at 18.94% 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

26.42%

Max: 100.65%
JNJ: 26.42%
Q3: 2.17%
Median: -32.82%
Q1: -63.57%
Min: -158.89%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

18.94%

Max: 100.65%
MRK: 18.94%
Q3: 2.17%
Median: -32.82%
Q1: -63.57%
Min: -158.89%

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

Net 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 margin clears its industry’s benchmark range.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

21.83%

JNJ: 21.83%
Max: 5.58%
Q3: 1.05%
Median: 0.00%
Q1: -2.00%
Min: -5.57%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

13.59%

MRK: 13.59%
Max: 5.58%
Q3: 1.05%
Median: 0.00%
Q1: -2.00%
Min: -5.57%

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

Operating Margin (TTM)

Both Johnson & Johnson (JNJ) at 27.41% and Merck (MRK) at 38.60% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

27.41%

Max: 100.30%
JNJ: 27.41%
Q3: 3.00%
Median: 0.00%
Q1: -133.46%
Min: -337.81%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

38.60%

Max: 100.30%
MRK: 38.60%
Q3: 3.00%
Median: 0.00%
Q1: -133.46%
Min: -337.81%

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)	26.42%	18.94%
ROA (TTM)	8.42%	12.58%
Net Margin (TTM)	21.83%	13.59%
Operating Margin (TTM)	27.41%	38.60%
Gross 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 Metrics

Revenue 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

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

EPS Growth Metrics

EPS growth metrics for Johnson & Johnson (JNJ) and Merck (MRK)
Metric	JNJ	MRK
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 1.03 and Merck (MRK) at 1.30 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

1.03

Max: 26.16
Q3: 12.13
Median: 5.81
Q1: 2.70
JNJ: 1.03
Min: 0.23

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.30

Max: 26.16
Q3: 12.13
Median: 5.81
Q1: 2.70
MRK: 1.30
Min: 0.23

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 0.68 carries an industry-typical debt-to-equity mix, while Merck (MRK) at 1.07 uses more debt funding than most peers.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.68

Max: 1.60
Q3: 0.68
JNJ: 0.68
Median: 0.15
Q1: 0.02
Min: 0.00

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.07

Max: 1.60
MRK: 1.07
Q3: 0.68
Median: 0.15
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)	1.03	1.30
Debt / Equity (MRQ)	0.68	1.07
Net Debt / EBITDA	0.96	1.47

Dividends

Dividend Yield (TTM)

Both Johnson & Johnson (JNJ) at 1.98% and Merck (MRK) at 2.53% 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

1.98%

JNJ: 1.98%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.53%

MRK: 2.53%
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)

Both Johnson & Johnson (JNJ) at 60.25% and Merck (MRK) at 93.52% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

60.25%

JNJ: 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%

MRK: 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 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)	1.98%	2.53%
Dividend Payout Ratio (TTM)	60.25%	93.52%

Valuation

P/E Ratio (TTM)

Both Johnson & Johnson (JNJ) at 30.05 and Merck (MRK) at 35.71 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

30.05

Max: 84.76
Q3: 48.50
JNJ: 30.05
Median: 26.28
Q1: 15.88
Min: 2.09

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

35.71

Max: 84.76
Q3: 48.50
MRK: 35.71
Median: 26.28
Q1: 15.88
Min: 2.09

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 6.48 and Merck (MRK) at 4.76 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.48

Max: 68.43
Q3: 29.55
Median: 8.01
JNJ: 6.48
Q1: 3.56
Min: 0.01

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

4.76

Max: 68.43
Q3: 29.55
Median: 8.01
MRK: 4.76
Q1: 3.56
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)

Merck (MRK) at 6.82 is valued about in line with its industry on P/B ratio, while Johnson & Johnson (JNJ) at 7.69 carries an above-peer premium to book — JNJ is pricier on assets.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

7.69

Max: 15.41
JNJ: 7.69
Q3: 7.29
Median: 3.81
Q1: 1.69
Min: -6.68

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.82

Max: 15.41
Q3: 7.29
MRK: 6.82
Median: 3.81
Q1: 1.69
Min: -6.68

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)	30.05	35.71
P/S Ratio (TTM)	6.48	4.76
P/B Ratio (MRQ)	7.69	6.82
Free Cash Flow Yield (TTM)	2.00%	4.49%