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JNJ vs. RPRX: Johnson & Johnson vs. Royalty Pharma Stock Comparison

How do Johnson & Johnson (JNJ) and Royalty Pharma (RPRX) 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 Royalty Pharma (RPRX) are both classified in the Pharmaceuticals sub-industry within the broader Pharmaceuticals industry, placing them in the closest GICS peer bucket.

Johnson & Johnson (JNJ) has more than two decades of public-market history since January 2, 1962, whereas Royalty Pharma (RPRX) listed on June 16, 2020 and has a much shorter record to draw on.

Company profile comparison for Johnson & Johnson (JNJ) and Royalty Pharma (RPRX)
Profile ItemJNJRPRX
NameJohnson & JohnsonRoyalty Pharma plc Class A Ordinary Shares
Country/RegionUnited StatesUnited States
GICS SectorHealth CareHealth Care
GICS Industry GroupPharmaceuticals, Biotechnology & Life SciencesPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticalsPharmaceuticals
GICS Sub-IndustryPharmaceuticalsPharmaceuticals
Market Capitalization664.95 billion USD38.70 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJanuary 2, 1962June 16, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

JNJ
RPRX
GSPC
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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX), 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 Royalty Pharma (RPRX). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Johnson & Johnson (JNJ) and Royalty Pharma (RPRX)
MetricJNJRPRX
Total Return (1Y)53.82%81.08%
Total Return (3Y, Annualized)27.51%39.21%
Total Return (5Y, Annualized)14.71%14.22%

Risk Profile

Drawdown History

JNJ
RPRX
GSPC
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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX), 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 Royalty Pharma (RPRX). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Johnson & Johnson (JNJ) and Royalty Pharma (RPRX)
MetricJNJRPRX
Volatility (1Y, Annualized)21.23%22.05%
Beta (5Y)0.210.36
Max Drawdown (5Y)-18.41%-41.98%
Avg. Volume (3M)6.93M3.10M

Risk-Adjusted Performance

Risk-Return Positioning

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JNJ and RPRX 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 Royalty Pharma (RPRX)
MetricJNJRPRX
Sharpe Ratio (1Y)2.333.48
Sortino Ratio (1Y)3.665.72

Profitability

ROE (TTM)

Both Johnson & Johnson (JNJ) at 20.02% and Royalty Pharma (RPRX) at 12.09% 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%

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

12.09%

Max
109.18%
RPRX
12.09%
Q3
6.23%
Median
-26.66%
Q1
-64.05%
Min
-167.77%
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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX): A comparison of their ROE against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Net Margin (TTM)

Royalty Pharma (RPRX) at 25.70% keeps the most of each sales dollar — above its industry’s net margin range — and Johnson & Johnson (JNJ) at 16.20% also retains a top-quartile share.

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%

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

25.70%

RPRX
25.70%
Max
18.05%
Q3
4.78%
Median
0.00%
Q1
-4.14%
Min
-17.05%
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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX): A comparison of their net margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Operating Margin (TTM)

Both Johnson & Johnson (JNJ) at 25.74% and Royalty Pharma (RPRX) at 81.32% 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

25.74%

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

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

81.32%

Max
83.12%
RPRX
81.32%
Q3
14.77%
Median
0.00%
Q1
-78.82%
Min
-207.40%
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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX): A comparison of their operating margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Profitability Metrics

Profitability metrics for Johnson & Johnson (JNJ) and Royalty Pharma (RPRX)
MetricJNJRPRX
ROE (TTM)20.02%12.09%
ROA (TTM)8.46%5.43%
Net Margin (TTM)16.20%25.70%
Operating Margin (TTM)25.74%81.32%
Gross Margin (TTM)67.78%99.79%

Growth

Revenue Growth

Both Johnson & Johnson (JNJ) at 6.05% and Royalty Pharma (RPRX) at 5.06% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX): 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 Royalty Pharma (RPRX) at 23.09% is closer to the peer norm — faster per-share earnings growth for JNJ.

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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Johnson & Johnson (JNJ) and Royalty Pharma (RPRX)
MetricJNJRPRX
Revenue Growth (YoY)6.05%5.06%
Revenue Growth (3Y CAGR)5.60%2.06%
EPS Growth (YoY)90.50%23.09%
EPS Growth (3Y CAGR)17.90%161.10%

Financial Strength

Current Ratio (MRQ)

Both Johnson & Johnson (JNJ) at 1.02 and Royalty Pharma (RPRX) at 1.29 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

1.02

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

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.29

Max
25.13
Q3
12.13
Median
5.52
Q1
2.47
RPRX
1.29
Min
0.10
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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX): A comparison of their current ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Debt / Equity (MRQ)

Johnson & Johnson (JNJ) at 0.55 carries an industry-typical debt-to-equity mix, while Royalty Pharma (RPRX) at 0.88 uses more debt funding than most peers.

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

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.88

Max
1.42
RPRX
0.88
Q3
0.65
Median
0.15
Q1
0.02
Min
0.00
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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX): 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 Royalty Pharma (RPRX)
MetricJNJRPRX
Current Ratio (MRQ)1.021.29
Debt / Equity (MRQ)0.550.88
Net Debt / EBITDA0.794.76

Dividends

Dividend Yield (TTM)

Both Johnson & Johnson (JNJ) at 1.94% and Royalty Pharma (RPRX) at 1.37% 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%

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.37%

RPRX
1.37%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX): A comparison of their dividend yield against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Payout Ratio (TTM)

Both Johnson & Johnson (JNJ) at 80.12% and Royalty Pharma (RPRX) at 60.46% 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%

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

60.46%

RPRX
60.46%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX): A comparison of their payout ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Metrics

Dividend metrics for Johnson & Johnson (JNJ) and Royalty Pharma (RPRX)
MetricJNJRPRX
Dividend Yield (TTM)1.94%1.37%
Dividend Payout Ratio (TTM)80.12%60.46%

Valuation

P/E Ratio (TTM)

Johnson & Johnson (JNJ) at 41.92 is near its industry’s usual P/E ratio, while Royalty Pharma (RPRX) at 43.99 sits in the richer quartile — RPRX needs stronger growth or earnings quality to justify the premium.

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

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

43.99

Max
85.34
RPRX
43.99
Q3
43.46
Median
26.69
Q1
13.30
Min
0.07
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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX): 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 6.69 and Royalty Pharma (RPRX) at 14.79 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.69

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

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

14.79

Max
58.18
Q3
25.77
RPRX
14.79
Median
7.30
Q1
3.01
Min
0.01
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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX): A comparison of their P/S ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/B Ratio (MRQ)

Royalty Pharma (RPRX) at 4.39 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

RPRX

Pharmaceuticals, Biotechnology & Life Sciences industry group

4.39

Max
13.53
Q3
6.54
RPRX
4.39
Median
3.25
Q1
1.69
Min
-5.59
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Johnson & Johnson (JNJ) vs. Royalty Pharma (RPRX): 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 Royalty Pharma (RPRX)
MetricJNJRPRX
P/E Ratio (TTM)41.9243.99
P/S Ratio (TTM)6.6914.79
P/B Ratio (MRQ)8.164.39
Free Cash Flow Yield (TTM)2.78%-1.16%