JNJ vs. PM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at JNJ and PM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | JNJ | PM |
|---|---|---|
| Company Name | Johnson & Johnson | Philip Morris International Inc. |
| Country | United States | United States |
| GICS Sector | Health Care | Consumer Staples |
| GICS Industry | Pharmaceuticals | Tobacco |
| Market Capitalization | 454.31 billion USD | 238.58 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1962 | March 17, 2008 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of JNJ and PM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | JNJ | PM |
|---|---|---|
| 5-Day Price Return | 3.87% | -5.96% |
| 13-Week Price Return | 20.92% | -14.32% |
| 26-Week Price Return | 13.75% | -3.44% |
| 52-Week Price Return | 17.04% | 28.15% |
| Month-to-Date Return | 1.74% | -5.51% |
| Year-to-Date Return | 30.44% | 27.35% |
| 10-Day Avg. Volume | 8.90M | 6.48M |
| 3-Month Avg. Volume | 8.47M | 5.74M |
| 3-Month Volatility | 18.23% | 27.35% |
| Beta | 0.35 | 0.47 |
Profitability
Return on Equity (TTM)
JNJ
30.39%
Pharmaceuticals Industry
- Max
- 38.59%
- Q3
- 19.84%
- Median
- 11.85%
- Q1
- 5.40%
- Min
- -10.91%
In the upper quartile for the Pharmaceuticals industry, JNJ’s Return on Equity of 30.39% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
PM
575.44%
Tobacco Industry
- Max
- 49.48%
- Q3
- 49.48%
- Median
- 13.16%
- Q1
- 5.02%
- Min
- 4.04%
PM’s Return on Equity of 575.44% is exceptionally high, placing it well beyond the typical range for the Tobacco industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
JNJ
25.00%
Pharmaceuticals Industry
- Max
- 40.67%
- Q3
- 19.07%
- Median
- 12.31%
- Q1
- 4.50%
- Min
- -9.91%
A Net Profit Margin of 25.00% places JNJ in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.
PM
21.08%
Tobacco Industry
- Max
- 21.36%
- Q3
- 16.88%
- Median
- 10.39%
- Q1
- 7.51%
- Min
- 4.74%
A Net Profit Margin of 21.08% places PM in the upper quartile for the Tobacco industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
JNJ
30.18%
Pharmaceuticals Industry
- Max
- 45.78%
- Q3
- 23.14%
- Median
- 16.68%
- Q1
- 7.98%
- Min
- -7.13%
An Operating Profit Margin of 30.18% places JNJ in the upper quartile for the Pharmaceuticals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
PM
36.28%
Tobacco Industry
- Max
- 18.53%
- Q3
- 15.03%
- Median
- 11.76%
- Q1
- 11.00%
- Min
- 6.94%
PM’s Operating Profit Margin of 36.28% is exceptionally high, placing it well above the typical range for the Tobacco industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | JNJ | PM |
|---|---|---|
| Return on Equity (TTM) | 30.39% | 575.44% |
| Return on Assets (TTM) | 12.16% | 12.56% |
| Net Profit Margin (TTM) | 25.00% | 21.08% |
| Operating Profit Margin (TTM) | 30.18% | 36.28% |
| Gross Profit Margin (TTM) | 67.98% | 66.46% |
Financial Strength
Current Ratio (MRQ)
JNJ
1.01
Pharmaceuticals Industry
- Max
- 4.65
- Q3
- 2.64
- Median
- 1.85
- Q1
- 1.26
- Min
- 0.78
JNJ’s Current Ratio of 1.01 falls into the lower quartile for the Pharmaceuticals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
PM
0.83
Tobacco Industry
- Max
- 3.37
- Q3
- 1.84
- Median
- 1.26
- Q1
- 0.79
- Min
- 0.39
PM’s Current Ratio of 0.83 aligns with the median group of the Tobacco industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
JNJ
0.65
Pharmaceuticals Industry
- Max
- 1.75
- Q3
- 0.82
- Median
- 0.35
- Q1
- 0.13
- Min
- 0.00
JNJ’s Debt-to-Equity Ratio of 0.65 is typical for the Pharmaceuticals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
PM
186.08
Tobacco Industry
- Max
- 2.19
- Q3
- 2.19
- Median
- 0.58
- Q1
- 0.07
- Min
- 0.01
With a Debt-to-Equity Ratio of 186.08, PM operates with exceptionally high leverage compared to the Tobacco industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
JNJ
34.01
Pharmaceuticals Industry
- Max
- 103.95
- Q3
- 43.60
- Median
- 9.83
- Q1
- 2.37
- Min
- -42.71
JNJ’s Interest Coverage Ratio of 34.01 is positioned comfortably within the norm for the Pharmaceuticals industry, indicating a standard and healthy capacity to cover its interest payments.
PM
11.67
Tobacco Industry
- Max
- 306.04
- Q3
- 126.21
- Median
- 9.35
- Q1
- 6.32
- Min
- -11.45
PM’s Interest Coverage Ratio of 11.67 is positioned comfortably within the norm for the Tobacco industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | JNJ | PM |
|---|---|---|
| Current Ratio (MRQ) | 1.01 | 0.83 |
| Quick Ratio (MRQ) | 0.68 | 0.83 |
| Debt-to-Equity Ratio (MRQ) | 0.65 | 186.08 |
| Interest Coverage Ratio (TTM) | 34.01 | 11.67 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
JNJ
2.65%
Pharmaceuticals Industry
- Max
- 7.14%
- Q3
- 3.45%
- Median
- 2.17%
- Q1
- 0.33%
- Min
- 0.00%
JNJ’s Dividend Yield of 2.65% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.
PM
3.51%
Tobacco Industry
- Max
- 6.77%
- Q3
- 6.12%
- Median
- 5.06%
- Q1
- 3.83%
- Min
- 0.57%
PM’s Dividend Yield of 3.51% is in the lower quartile for the Tobacco industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio (TTM)
JNJ
53.34%
Pharmaceuticals Industry
- Max
- 199.58%
- Q3
- 97.17%
- Median
- 53.47%
- Q1
- 22.97%
- Min
- 0.00%
JNJ’s Dividend Payout Ratio of 53.34% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
PM
70.92%
Tobacco Industry
- Max
- 78.29%
- Q3
- 75.97%
- Median
- 64.37%
- Q1
- 50.14%
- Min
- 49.96%
PM’s Dividend Payout Ratio of 70.92% is within the typical range for the Tobacco industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | JNJ | PM |
|---|---|---|
| Dividend Yield (TTM) | 2.65% | 3.51% |
| Dividend Payout Ratio (TTM) | 53.34% | 70.92% |
Valuation
Price-to-Earnings Ratio (TTM)
JNJ
20.10
Pharmaceuticals Industry
- Max
- 45.19
- Q3
- 27.91
- Median
- 20.59
- Q1
- 15.08
- Min
- 3.79
JNJ’s P/E Ratio of 20.10 is within the middle range for the Pharmaceuticals industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
PM
28.95
Tobacco Industry
- Max
- 44.17
- Q3
- 36.23
- Median
- 27.79
- Q1
- 11.97
- Min
- 9.91
PM’s P/E Ratio of 28.95 is within the middle range for the Tobacco industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
JNJ
5.03
Pharmaceuticals Industry
- Max
- 8.87
- Q3
- 4.56
- Median
- 2.14
- Q1
- 1.58
- Min
- 0.11
JNJ’s P/S Ratio of 5.03 is in the upper echelon for the Pharmaceuticals industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
PM
6.10
Tobacco Industry
- Max
- 7.60
- Q3
- 5.15
- Median
- 2.97
- Q1
- 1.39
- Min
- 0.80
PM’s P/S Ratio of 6.10 is in the upper echelon for the Tobacco industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
JNJ
4.68
Pharmaceuticals Industry
- Max
- 9.78
- Q3
- 4.99
- Median
- 2.48
- Q1
- 1.53
- Min
- 0.59
JNJ’s P/B Ratio of 4.68 is within the conventional range for the Pharmaceuticals industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
PM
1,368.86
Tobacco Industry
- Max
- 4.76
- Q3
- 4.76
- Median
- 3.34
- Q1
- 1.97
- Min
- 1.05
At 1,368.86, PM’s P/B Ratio is at an extreme premium to the Tobacco industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | JNJ | PM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 20.10 | 28.95 |
| Price-to-Sales Ratio (TTM) | 5.03 | 6.10 |
| Price-to-Book Ratio (MRQ) | 4.68 | 1,368.86 |
| Price-to-Free Cash Flow Ratio (TTM) | 24.56 | 24.46 |