Johnson & Johnson (JNJ) vs. Novartis (NVS)

Company Profile

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

Johnson & Johnson (JNJ) trades as a standard ordinary-equity line, while Novartis (NVS) is an ADR tied to a foreign-share or depositary-receipt structure — compare with FX exposure, program fees, and dividend-withholding-tax differences in mind.

Historical Performance

Historical Performance at a Glance

Profitability

Both Johnson & Johnson (JNJ) at 26.26% and Novartis (NVS) at 31.67% rank in the top quartile for Return on Equity (TTM) among industry peers, indicating strong returns on shareholders’ equity.

Both Johnson & Johnson (JNJ) at 21.83% and Novartis (NVS) at 24.06% rank in the top quartile for Net Profit Margin (TTM) among industry peers, indicating both companies convert revenue into net income more strongly than typical competitors.

Both Johnson & Johnson (JNJ) at 25.88% and Novartis (NVS) at 30.37% rank in the top quartile for Operating Profit Margin (TTM) among industry peers, indicating both companies convert revenue into operating income more strongly than typical competitors.

Profitability at a Glance

Financial Strength

Both Johnson & Johnson (JNJ) at 1.03 and Novartis (NVS) at 0.85 run Current Ratio (MRQ) in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

Johnson & Johnson (JNJ) at 0.68 carries Debt-to-Equity Ratio (MRQ) around its industry mid-range, while Novartis (NVS) at 1.22 sits in the higher-leverage quartile.

Both Johnson & Johnson (JNJ) at 34.01 and Novartis (NVS) at 15.76 rank in the top quartile for Interest Coverage Ratio (TTM) among industry peers, indicating ample headroom to cover interest payments from operating income or EBIT.

Financial Strength at a Glance

Growth

Revenue Growth

Revenue Growth at a Glance

EPS Growth

EPS Growth at a Glance

Dividend

Both Johnson & Johnson (JNJ) at 2.26% and Novartis (NVS) at 3.16% report Dividend Yield (TTM) near their industry mid-ranges, so neither company stands out strongly from peers on cash yield relative to share price.

Novartis (NVS) reports an unusual Dividend Payout Ratio (TTM) of 120.63% — outside the typical 0–100% range, indicating either negative earnings (negative ratio) or dividends above current-period earnings (above 100%), both signaling sustainability concerns. Meanwhile Johnson & Johnson (JNJ) reports 59.52%, ranking against industry peers normally.

Dividend at a Glance

Valuation

Both Johnson & Johnson (JNJ) at 26.37 and Novartis (NVS) at 20.29 post Price-to-Earnings Ratio (TTM) near the typical industry midpoint — neither company stands out strongly from peers on trailing earnings multiple.

Both Johnson & Johnson (JNJ) at 5.76 and Novartis (NVS) at 4.88 post Price-to-Sales Ratio (TTM) near the typical industry midpoint — neither company stands out strongly from peers on trailing revenue multiple.

Both Johnson & Johnson (JNJ) at 7.19 and Novartis (NVS) at 8.10 post Price-to-Book Ratio (MRQ) near the typical industry midpoint — neither company stands out strongly from peers on book-value multiple.

Valuation at a Glance