JNJ vs. MSFT: Johnson & Johnson vs. Microsoft Stock Comparison

November 11, 2026

How do Johnson & Johnson (JNJ) and Microsoft (MSFT) 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) is classified in the Health Care sector (Pharmaceuticals, Biotechnology & Life Sciences), whereas Microsoft (MSFT) belongs to Information Technology (Software & Services) — their GICS classifications point to very different parts of the market.

Company profile comparison for Johnson & Johnson (JNJ) and Microsoft (MSFT)
Profile Item	JNJ	MSFT
Name	Johnson & Johnson	Microsoft Corporation Common Stock
Country/Region	United States	United States
GICS Sector	Health Care	Information Technology
GICS Industry Group	Pharmaceuticals, Biotechnology & Life Sciences	Software & Services
GICS Industry	Pharmaceuticals	Software
GICS Sub-Industry	Pharmaceuticals	Systems Software
Market Capitalization	664.95 billion USD	3,940.41 billion USD
Currency	USD	USD
Exchange	NYSE	Nasdaq
Listing Date	January 2, 1962	March 13, 1986
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

JNJ

MSFT

GSPC

Johnson & Johnson (JNJ) vs. Microsoft (MSFT), 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 Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Johnson & Johnson (JNJ) and Microsoft (MSFT)
Metric	JNJ	MSFT
Total Return (1Y)	53.82%	10.30%
Total Return (3Y, Annualized)	27.51%	15.53%
Total Return (5Y, Annualized)	14.71%	11.01%

Risk Profile

Drawdown History

JNJ

MSFT

GSPC

Johnson & Johnson (JNJ) vs. Microsoft (MSFT), 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 Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Johnson & Johnson (JNJ) and Microsoft (MSFT)
Metric	JNJ	MSFT
Volatility (1Y, Annualized)	21.23%	33.91%
Beta (5Y)	0.21	1.03
Max Drawdown (5Y)	-18.41%	-37.15%
Avg. Volume (3M)	6.93M	22.95M

Risk-Adjusted Performance

Risk-Return Positioning

JNJ and MSFT are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Johnson & Johnson (JNJ) and Microsoft (MSFT)
Metric	JNJ	MSFT
Sharpe Ratio (1Y)	2.33	0.18
Sortino Ratio (1Y)	3.66	0.28

Profitability

ROE (TTM)

Both Johnson & Johnson (JNJ) at 20.02% and Microsoft (MSFT) at 34.22% 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

20.02%

Max: 109.18%
JNJ: 20.02%
Q3: 6.23%
Median: -26.66%
Q1: -64.05%
Min: -167.77%

MSFT

Software & Services industry group

34.22%

Max: 53.85%
MSFT: 34.22%
Q3: 17.90%
Median: 6.59%
Q1: -9.59%
Min: -50.52%

Johnson & Johnson (JNJ) vs. Microsoft (MSFT): A comparison of their ROE against their respective Pharmaceuticals, Biotechnology & Life Sciences and Software & Services industry group benchmarks.

Net Margin (TTM)

For every dollar of sales, both Johnson & Johnson (JNJ) at 16.20% and Microsoft (MSFT) at 41.17% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

16.20%

Max: 18.05%
JNJ: 16.20%
Q3: 4.78%
Median: 0.00%
Q1: -4.14%
Min: -17.05%

MSFT

Software & Services industry group

41.17%

MSFT: 41.17%
Max: 41.17%
Q3: 15.28%
Median: 4.63%
Q1: -5.42%
Min: -33.17%

Johnson & Johnson (JNJ) vs. Microsoft (MSFT): A comparison of their net margin against their respective Pharmaceuticals, Biotechnology & Life Sciences and Software & Services industry group benchmarks.

Operating Margin (TTM)

Microsoft (MSFT) at 49.76% shows unusually strong operating efficiency — above its industry’s operating margin range — and Johnson & Johnson (JNJ) at 25.74% also operates in the top quartile.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

25.74%

Max: 83.12%
JNJ: 25.74%
Q3: 14.77%
Median: 0.00%
Q1: -78.82%
Min: -207.40%

MSFT

Software & Services industry group

49.76%

MSFT: 49.76%
Max: 46.89%
Q3: 17.64%
Median: 8.73%
Q1: -2.13%
Min: -30.45%

Johnson & Johnson (JNJ) vs. Microsoft (MSFT): A comparison of their operating margin against their respective Pharmaceuticals, Biotechnology & Life Sciences and Software & Services industry group benchmarks.

Profitability Metrics

Profitability metrics for Johnson & Johnson (JNJ) and Microsoft (MSFT)
Metric	JNJ	MSFT
ROE (TTM)	20.02%	34.22%
ROA (TTM)	8.46%	14.41%
Net Margin (TTM)	16.20%	41.17%
Operating Margin (TTM)	25.74%	49.76%
Gross Margin (TTM)	67.78%	67.66%

Growth

Revenue Growth

Both Johnson & Johnson (JNJ) at 6.05% and Microsoft (MSFT) at 17.79% 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. Microsoft (MSFT): 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 Microsoft (MSFT) at 31.60% is closer to the peer norm — faster per-share earnings growth for JNJ.

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

Growth Metrics

Growth metrics for Johnson & Johnson (JNJ) and Microsoft (MSFT)
Metric	JNJ	MSFT
Revenue Growth (YoY)	6.05%	17.79%
Revenue Growth (3Y CAGR)	5.60%	16.12%
EPS Growth (YoY)	90.50%	31.60%
EPS Growth (3Y CAGR)	17.90%	22.86%

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.23 keeps current ratio within its industry’s typical mid-range, while Johnson & Johnson (JNJ) at 1.02 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for JNJ.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.02

Max: 25.13
Q3: 12.13
Median: 5.52
Q1: 2.47
JNJ: 1.02
Min: 0.10

MSFT

Software & Services industry group

1.23

Max: 5.11
Q3: 2.77
Median: 1.67
MSFT: 1.23
Q1: 1.01
Min: 0.03

Johnson & Johnson (JNJ) vs. Microsoft (MSFT): A comparison of their current ratio against their respective Pharmaceuticals, Biotechnology & Life Sciences and Software & Services industry group benchmarks.

Debt / Equity (MRQ)

Both Johnson & Johnson (JNJ) at 0.55 and Microsoft (MSFT) at 0.28 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.55

Max: 1.42
Q3: 0.65
JNJ: 0.55
Median: 0.15
Q1: 0.02
Min: 0.00

MSFT

Software & Services industry group

0.28

Max: 2.52
Q3: 1.13
Median: 0.40
MSFT: 0.28
Q1: 0.07
Min: 0.00

Johnson & Johnson (JNJ) vs. Microsoft (MSFT): A comparison of their debt-to-equity ratio against their respective Pharmaceuticals, Biotechnology & Life Sciences and Software & Services industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Johnson & Johnson (JNJ) and Microsoft (MSFT)
Metric	JNJ	MSFT
Current Ratio (MRQ)	1.02	1.23
Debt / Equity (MRQ)	0.55	0.28
Net Debt / EBITDA	0.79	0.34

Dividends

Dividend Yield (TTM)

Both Johnson & Johnson (JNJ) at 1.94% and Microsoft (MSFT) at 0.69% 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

1.94%

JNJ: 1.94%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT

Software & Services industry group

0.69%

MSFT: 0.69%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Johnson & Johnson (JNJ) vs. Microsoft (MSFT): A comparison of their dividend yield against their respective Pharmaceuticals, Biotechnology & Life Sciences and Software & Services industry group benchmarks.

Dividend Payout Ratio (TTM)

Both Johnson & Johnson (JNJ) at 80.12% and Microsoft (MSFT) at 19.00% 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

80.12%

JNJ: 80.12%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT

Software & Services industry group

19.00%

MSFT: 19.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Johnson & Johnson (JNJ) vs. Microsoft (MSFT): A comparison of their payout ratio against their respective Pharmaceuticals, Biotechnology & Life Sciences and Software & Services industry group benchmarks.

Dividend Metrics

Dividend metrics for Johnson & Johnson (JNJ) and Microsoft (MSFT)
Metric	JNJ	MSFT
Dividend Yield (TTM)	1.94%	0.69%
Dividend Payout Ratio (TTM)	80.12%	19.00%

Valuation

P/E Ratio (TTM)

Both Johnson & Johnson (JNJ) at 41.92 and Microsoft (MSFT) at 27.69 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

41.92

Max: 85.34
Q3: 43.46
JNJ: 41.92
Median: 26.69
Q1: 13.30
Min: 0.07

MSFT

Software & Services industry group

27.69

Max: 112.94
Q3: 60.32
Median: 32.91
MSFT: 27.69
Q1: 18.77
Min: 6.69

Johnson & Johnson (JNJ) vs. Microsoft (MSFT): A comparison of their P/E ratio against their respective Pharmaceuticals, Biotechnology & Life Sciences and Software & Services industry group benchmarks.

P/S Ratio (TTM)

Johnson & Johnson (JNJ) at 6.69 is priced about in line with its industry on P/S ratio, while Microsoft (MSFT) at 11.37 sits in the pricier quartile — MSFT costs more per dollar of sales.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.69

Max: 58.18
Q3: 25.77
Median: 7.30
JNJ: 6.69
Q1: 3.01
Min: 0.01

MSFT

Software & Services industry group

11.37

Max: 17.91
MSFT: 11.37
Q3: 8.78
Median: 4.25
Q1: 2.23
Min: 0.02

Johnson & Johnson (JNJ) vs. Microsoft (MSFT): A comparison of their P/S ratio against their respective Pharmaceuticals, Biotechnology & Life Sciences and Software & Services industry group benchmarks.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.38 is valued about in line with its industry on P/B ratio, while Johnson & Johnson (JNJ) at 8.16 carries an above-peer premium to book — JNJ is pricier on assets.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

8.16

Max: 13.53
JNJ: 8.16
Q3: 6.54
Median: 3.25
Q1: 1.69
Min: -5.59

MSFT

Software & Services industry group

8.38

Max: 16.63
Q3: 8.50
MSFT: 8.38
Median: 4.30
Q1: 1.92
Min: -3.90

Johnson & Johnson (JNJ) vs. Microsoft (MSFT): A comparison of their P/B ratio against their respective Pharmaceuticals, Biotechnology & Life Sciences and Software & Services industry group benchmarks.

Valuation Metrics

Valuation metrics for Johnson & Johnson (JNJ) and Microsoft (MSFT)
Metric	JNJ	MSFT
P/E Ratio (TTM)	41.92	27.69
P/S Ratio (TTM)	6.69	11.37
P/B Ratio (MRQ)	8.16	8.38
Free Cash Flow Yield (TTM)	2.78%	0.08%