Stock Showdown: Johnson & Johnson vs. Pfizer
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Yahoo Finance
- Johnson & Johnson Revenue Growth: Johnson & Johnson recorded $88.8 billion in revenue for 2024, with projections of $94.2 billion for 2025 and expected sales between $99.5 billion and $100.5 billion for 2026, indicating enhanced operational efficiency and growth potential following the spin-off of its consumer health division.
- Pfizer Revenue Decline: Pfizer's total revenue plummeted from approximately $100 billion in 2022 to $59.5 billion in 2023; however, the company is actively developing new drugs, particularly bolstering its oncology segment through the acquisition of Seagen, with the global oncology drug market projected to grow from $286 billion in 2026 to $679 billion by 2034.
- Dividend Yield Comparison: Pfizer offers a dividend yield exceeding 6%, while Johnson & Johnson's yield stands at 2.1%; despite Pfizer's lower P/E ratio, concerns about the sustainability of its dividend arise from stagnant revenue growth, whereas Johnson & Johnson's over 60 years of dividend increases suggest greater reliability for investors.
- Market Outlook Analysis: In the current economic climate, Johnson & Johnson demonstrates stronger market competitiveness due to its stable cash flow and increasing revenue, while Pfizer must rely on the success of its drug pipeline to maintain shareholder returns, prompting investors to carefully assess the investment value of each company.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy JNJ?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on JNJ
Wall Street analysts forecast JNJ stock price to fall
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 240.100
Low
190.00
Averages
218.50
High
240.00
Current: 240.100
Low
190.00
Averages
218.50
High
240.00
About JNJ
Johnson & Johnson and its subsidiaries are engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The Company’s segments include Innovative Medicine and MedTech. The Innovative Medicine segment is focused on various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, cardiovascular and metabolism. Its products include REMICADE (infliximab), SIMPONI (golimumab), SIMPONI ARIA (golimumab), STELARA (ustekinumab), TREMFYA (guselkumab), EDURANT (rilpivirine), and INVEGA SUSTENNA/XEPLION (paliperidone palmitate). The MedTech segment includes a portfolio of products used in cardiovascular, orthopedics, surgery, and vision categories. The Cardiovascular portfolio includes electrophysiology products to treat heart rhythm disorders and circulatory restoration products (Shockwave) for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia Upgraded to Buy as AI Trade Gains Momentum; Johnson & Johnson Receives Strong Buy Rating
- Nvidia Upgrade: Nvidia (NVDA) has been upgraded to Buy by Deep Value Investing, as early strong signs suggest a resurgence in the AI trade; despite the stock's stagnation over the past six months, its nine-day consecutive rise indicates a return to risk-on sentiment, with expectations for continued performance beats and guidance raises.
- Johnson & Johnson Strong Performance: Johnson & Johnson (JNJ) received a Strong Buy upgrade from Edmund Ingham after reporting Q1 revenues of $24.1 billion, up nearly 10% year-over-year, and raising its full-year 2026 sales guidance above $100 billion, positioning it as a clear growth leader in healthcare with minimal patent risk.
- Accenture Downgrade: Accenture (ACN) was downgraded to Hold by Redfox Capital Ideas due to slowing bookings momentum and mixed pricing trends; despite record bookings of $22.1 billion, growth has slowed to just 1%, leading analysts to express concerns about near-term growth acceleration.
- Coca-Cola Downgrade: Coca-Cola (KO) has been downgraded to Hold by Dhierin Bechai, as the stock has risen 8.4% since coverage began, but macroeconomic pressures and inflation are seen as limiting further upside potential, potentially increasing input and logistics costs while reducing consumption in away-from-home sales channels.
See More
U.S. Earnings Season Shows Strong Growth Potential
- Earnings Beat Expectations: Approximately 80% of S&P 500 companies have exceeded expectations according to FactSet, showcasing strong profitability and boosting market confidence.
- Rising Earnings Growth Rate: The first-quarter earnings growth rate stands at 12.4%, and if sustained, it would mark the sixth consecutive quarter of double-digit growth, reflecting robust economic recovery momentum.
- Attractive Tech Valuations: The S&P 500 tech sector's forward P/E ratio is around 22 times, below the five-year average of 25.9, indicating significant valuation compression relative to earnings, providing a favorable buying opportunity for investors.
- Market Rebound Potential: The S&P 500 is just 0.2% away from its all-time closing high, with corporate profits expected to rise about 17% for Q1, laying the groundwork for a return to historical peaks.
See More
Market Dynamics and Company Earnings Analysis
- ASML Surpasses Expectations: ASML's first-quarter results significantly exceeded expectations, and the company raised its 2026 guidance, indicating strong demand for semiconductor manufacturing equipment, which could further boost the stock prices of related companies.
- Morgan Stanley's Strong Quarter: Morgan Stanley reported substantial beats in equities and fixed-income trading, leading to a more than 2% increase in its stock price, showcasing its competitive edge in investment banking, with CEO Ted Pick's leadership gaining market recognition.
- Wells Fargo's Underwhelming Performance: Although Wells Fargo reported decent quarterly results, concerns over its private credit portfolio led analysts to lower its price target and remove it from their best ideas list, resulting in the stock stabilizing after a 5.7% decline.
- Johnson & Johnson Price Target Hikes: Following its earnings report, Barclays and Stifel raised Johnson & Johnson's price targets to $255 and $250 respectively, reflecting market optimism about its strong pharmaceutical portfolio, particularly driven by cancer treatments and Tremfya.
See More
Taiho Ventures Celebrates 10th Anniversary with Strong Track Record
- Leading Investment Scale: Taiho Ventures maintains the largest fund size among Japanese pharmaceutical CVCs, focusing on supporting innovative therapeutics startups and leveraging its R&D and business management expertise to drive the societal application of cutting-edge technologies and therapies.
- Successful Investment Cases: Over the past decade, Taiho Ventures has invested in more than 30 innovative companies developing novel therapeutics and cutting-edge healthcare technologies, achieving multiple successful exits, including Dren Bio acquired by Sanofi and Halda Therapeutics acquired by Johnson & Johnson.
- Strengthening R&D Pipeline: Taiho Ventures' first portfolio company, Arcus Biosciences, granted Taiho Pharmaceutical exclusive licenses to five pipeline programs, significantly enhancing Taiho Pharmaceutical's R&D pipeline and advancing its strategic positioning in oncology.
- Global Investment Commitment: Taiho Ventures actively invests across the U.S., Europe, and Japan, utilizing an evergreen fund structure to ensure long-term investment support, and is dedicated to collaborating closely with entrepreneurs and innovators to advance transformative healthcare technologies that address unmet medical needs.
See More
Johnson & Johnson Raises 2026 Outlook Driven by Strong Growth
- Significant Performance Growth: Johnson & Johnson reported worldwide sales of $24.1 billion in Q1, reflecting a 6.4% increase despite a 540 basis point headwind from STELARA, demonstrating strong performance across multiple sectors.
- Innovation-Driven Pharmaceuticals: In oncology, DARZALEX achieved $4 billion in sales with an 18% growth, while the FDA's approval of TECVAYLI plus DARZALEX FASPRO positions the regimen as a potential new standard of care, further solidifying J&J's leadership in this area.
- Robust Financial Health: The company reported net earnings of $5.2 billion for the first quarter, with diluted earnings per share at $2.14 and adjusted diluted earnings per share at $2.70, showcasing a strong foundation in profitability and cash flow.
- Optimistic Outlook: J&J raised its operational sales guidance for 2026 to a range of 5.9% to 6.9%, anticipating sales to exceed $100 billion for the first time, reflecting the company's confidence in future growth and emphasis on new product launches.
See More
Analysis of Defensive Healthcare Stocks
- Importance of Economic Moats: During economic uncertainty, investors should focus on healthcare companies with wide economic moats to avoid value and safety traps, ensuring investment stability and long-term growth potential.
- Strong Financial Health: Both Becton, Dickinson and Johnson & Johnson have debt-to-equity ratios below 1 and are Dividend Kings with 54 and 64 years of annual dividend growth, demonstrating their financial resilience amid economic fluctuations.
- Demand for Medical Devices: The consistent demand for Becton, Dickinson's medical supplies and lab equipment from hospitals during both booms and busts indicates the company's stability and market demand in the medical device sector.
- Signal of Dividend Growth: Johnson & Johnson's medical technology and pharmaceutical segments possess a wide economic moat, as noted by analyst Karen Anderson, reflecting its ability to withstand risks during economic downturns.
See More
Nvidia Upgraded to Buy as AI Trade Gains Momentum; Johnson & Johnson Receives Strong Buy Rating
- Nvidia Upgrade: Nvidia (NVDA) has been upgraded to Buy by Deep Value Investing, as early strong signs suggest a resurgence in the AI trade; despite the stock's stagnation over the past six months, its nine-day consecutive rise indicates a return to risk-on sentiment, with expectations for continued performance beats and guidance raises.
- Johnson & Johnson Strong Performance: Johnson & Johnson (JNJ) received a Strong Buy upgrade from Edmund Ingham after reporting Q1 revenues of $24.1 billion, up nearly 10% year-over-year, and raising its full-year 2026 sales guidance above $100 billion, positioning it as a clear growth leader in healthcare with minimal patent risk.
- Accenture Downgrade: Accenture (ACN) was downgraded to Hold by Redfox Capital Ideas due to slowing bookings momentum and mixed pricing trends; despite record bookings of $22.1 billion, growth has slowed to just 1%, leading analysts to express concerns about near-term growth acceleration.
- Coca-Cola Downgrade: Coca-Cola (KO) has been downgraded to Hold by Dhierin Bechai, as the stock has risen 8.4% since coverage began, but macroeconomic pressures and inflation are seen as limiting further upside potential, potentially increasing input and logistics costs while reducing consumption in away-from-home sales channels.
See More
U.S. Earnings Season Shows Strong Growth Potential
- Earnings Beat Expectations: Approximately 80% of S&P 500 companies have exceeded expectations according to FactSet, showcasing strong profitability and boosting market confidence.
- Rising Earnings Growth Rate: The first-quarter earnings growth rate stands at 12.4%, and if sustained, it would mark the sixth consecutive quarter of double-digit growth, reflecting robust economic recovery momentum.
- Attractive Tech Valuations: The S&P 500 tech sector's forward P/E ratio is around 22 times, below the five-year average of 25.9, indicating significant valuation compression relative to earnings, providing a favorable buying opportunity for investors.
- Market Rebound Potential: The S&P 500 is just 0.2% away from its all-time closing high, with corporate profits expected to rise about 17% for Q1, laying the groundwork for a return to historical peaks.
See More
Market Dynamics and Company Earnings Analysis
- ASML Surpasses Expectations: ASML's first-quarter results significantly exceeded expectations, and the company raised its 2026 guidance, indicating strong demand for semiconductor manufacturing equipment, which could further boost the stock prices of related companies.
- Morgan Stanley's Strong Quarter: Morgan Stanley reported substantial beats in equities and fixed-income trading, leading to a more than 2% increase in its stock price, showcasing its competitive edge in investment banking, with CEO Ted Pick's leadership gaining market recognition.
- Wells Fargo's Underwhelming Performance: Although Wells Fargo reported decent quarterly results, concerns over its private credit portfolio led analysts to lower its price target and remove it from their best ideas list, resulting in the stock stabilizing after a 5.7% decline.
- Johnson & Johnson Price Target Hikes: Following its earnings report, Barclays and Stifel raised Johnson & Johnson's price targets to $255 and $250 respectively, reflecting market optimism about its strong pharmaceutical portfolio, particularly driven by cancer treatments and Tremfya.
See More
Taiho Ventures Celebrates 10th Anniversary with Strong Track Record
- Leading Investment Scale: Taiho Ventures maintains the largest fund size among Japanese pharmaceutical CVCs, focusing on supporting innovative therapeutics startups and leveraging its R&D and business management expertise to drive the societal application of cutting-edge technologies and therapies.
- Successful Investment Cases: Over the past decade, Taiho Ventures has invested in more than 30 innovative companies developing novel therapeutics and cutting-edge healthcare technologies, achieving multiple successful exits, including Dren Bio acquired by Sanofi and Halda Therapeutics acquired by Johnson & Johnson.
- Strengthening R&D Pipeline: Taiho Ventures' first portfolio company, Arcus Biosciences, granted Taiho Pharmaceutical exclusive licenses to five pipeline programs, significantly enhancing Taiho Pharmaceutical's R&D pipeline and advancing its strategic positioning in oncology.
- Global Investment Commitment: Taiho Ventures actively invests across the U.S., Europe, and Japan, utilizing an evergreen fund structure to ensure long-term investment support, and is dedicated to collaborating closely with entrepreneurs and innovators to advance transformative healthcare technologies that address unmet medical needs.
See More
Johnson & Johnson Raises 2026 Outlook Driven by Strong Growth
- Significant Performance Growth: Johnson & Johnson reported worldwide sales of $24.1 billion in Q1, reflecting a 6.4% increase despite a 540 basis point headwind from STELARA, demonstrating strong performance across multiple sectors.
- Innovation-Driven Pharmaceuticals: In oncology, DARZALEX achieved $4 billion in sales with an 18% growth, while the FDA's approval of TECVAYLI plus DARZALEX FASPRO positions the regimen as a potential new standard of care, further solidifying J&J's leadership in this area.
- Robust Financial Health: The company reported net earnings of $5.2 billion for the first quarter, with diluted earnings per share at $2.14 and adjusted diluted earnings per share at $2.70, showcasing a strong foundation in profitability and cash flow.
- Optimistic Outlook: J&J raised its operational sales guidance for 2026 to a range of 5.9% to 6.9%, anticipating sales to exceed $100 billion for the first time, reflecting the company's confidence in future growth and emphasis on new product launches.
See More
Analysis of Defensive Healthcare Stocks
- Importance of Economic Moats: During economic uncertainty, investors should focus on healthcare companies with wide economic moats to avoid value and safety traps, ensuring investment stability and long-term growth potential.
- Strong Financial Health: Both Becton, Dickinson and Johnson & Johnson have debt-to-equity ratios below 1 and are Dividend Kings with 54 and 64 years of annual dividend growth, demonstrating their financial resilience amid economic fluctuations.
- Demand for Medical Devices: The consistent demand for Becton, Dickinson's medical supplies and lab equipment from hospitals during both booms and busts indicates the company's stability and market demand in the medical device sector.
- Signal of Dividend Growth: Johnson & Johnson's medical technology and pharmaceutical segments possess a wide economic moat, as noted by analyst Karen Anderson, reflecting its ability to withstand risks during economic downturns.
See More
