Johnson & Johnson vs Pfizer, side by side
Both are large US healthcare companies, but they are built differently. Johnson & Johnson spreads across prescription medicines and medical devices after spinning off its consumer-health arm, so no single product dominates. Pfizer is a pure pharmaceutical company that saw a huge COVID vaccine boom then decline, and now works to replace revenue as older drugs lose patent protection.
On our factor screen it looks strongest on momentum and quality, and weakest on value.
On our factor screen it looks strongest on value and income, and weakest on growth.
The numbers, side by side
| Measure |  Johnson & Johnson |  Pfizer Inc. |
|---|---|---|
| Price | $256.35 | $25.01 |
| Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'. | $617.78B | $142.54B |
| P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. | 29.7 | 18.9 |
| Div yield: Dividend yield: the yearly dividend as a percentage of the share price - roughly the income you'd earn just from dividends. | 2.1% | 6.9% |
| Revenue growth | 6.6% | 5.4% |
| 1Y: How much the share price has moved over the past year. | +57% | +12% |
More measures
| Forward P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. | 20.0 | 8.8 |
|---|---|---|
| Net margin | 21.5% | 11.8% |
| ROE | 25.7% | 8.3% |
| Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. | 0.23 | 0.31 |
The bolder figure is simply the larger of the two - higher is not automatically good (a higher P/E means more expectation in the price; a higher beta means bigger swings).
How they differ
Johnson & Johnson is roughly 4x the size of Pfizer Inc. by market value. On our factor screen Johnson & Johnson currently screens higher on momentum and quality, while Pfizer Inc. screens higher on value. Johnson & Johnson trades on the higher P/E (29.7 vs 18.9), so more expectation is already built into its price; and Pfizer Inc. currently yields more (6.9% vs 2.1%). Over the past year the share prices moved +57% (Johnson & Johnson) vs +12% (Pfizer Inc.).
Descriptive only - how the two compare on today's data, never a verdict on either.
Johnson & Johnson, in one line
Johnson & Johnson is a massive healthcare giant that develops medical devices and innovative medicines to help people live healthier lives.
Read the full Johnson & Johnson explainer →Pfizer Inc., in one line
Pfizer is a global pharmaceutical giant that researches, develops, and manufactures medicines and vaccines to treat a wide range of human health conditions.
Read the full Pfizer Inc. explainer →What to weigh
If dividend income matters to you, the yields differ (2.1% Johnson & Johnson vs 6.9% Pfizer Inc.). These are facts to understand, not a verdict - read each full explainer before deciding anything.
Common questions
Are Johnson & Johnson and Pfizer the same kind of company?
Both make prescription medicines, but the mix differs. Johnson & Johnson also runs a large medical-devices business and has spun off its consumer brands, so it is more diversified. Pfizer is focused purely on pharmaceuticals, which means its results lean more heavily on the success of individual drugs.
What is a patent cliff and why does it matter for Pfizer?
A patent cliff is when a drug loses its exclusive protection and cheaper copies arrive, cutting sales sharply. Pfizer has several older medicines approaching this point, so a lot of attention falls on its newer drugs and acquisitions. Johnson & Johnson faces similar patent expiries, though its device business adds another revenue stream.