Johnson & Johnson vs Merck & Co., Inc., two Drug Manufacturers stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where JNJ and MRK diverge most: on revenue growth, JNJ reads +7.9% and MRK reads +2.9%; on ev/ebitda, JNJ reads 329.9 and MRK reads 600.7. The rest of the comparable metrics sit closer together. What JNJ's price implies is a demanding bet versus history and the cohort (segment-resolved basis). What MRK's price implies is a bet that sits within the historical range (whole-company basis). The bull and bear cases for each are in their full reports below.
| Metric | JNJ | MRK |
|---|---|---|
| Price | $256.93 | $123.48 |
| Market cap | $628.2B | $305.2B |
| Sector | Drug Manufacturers | Drug Manufacturers |
| Stage | Mature | Mature |
| Implied growth (priced in) | — | +6.2% |
| P/E | 29.8 | 34.8 |
| P/B | 7.74 | 6.65 |
| P/S | 6.52 | 4.64 |
| EV/EBITDA | 329.9 | 600.7 |
| Revenue growth | +7.9% | +2.9% |
| Gross margin | 66.3% | — |
| Net margin | 21.8% | 13.6% |
| Return on equity | 25.9% | 19.4% |
| Return on assets | 10.5% | 6.9% |
| FCF yield | 2.8% | 4.6% |
| Dividend yield | 2.0% | 2.7% |
| Debt / equity | 0.68 | 1.07 |
| Current ratio | 1.03 | 1.30 |
| Altman Z (solvency) | 4.82 | 7.31 |
| Piotroski F (quality) | 5 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.