Johnson & Johnson vs Novartis AG, two Drug Manufacturers stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
What is priced in: Johnson & Johnson at 29.5 times earnings is priced as healthcare's permanent institution, Novartis at 21.5 as merely one of its best current operators. The economics do not support the hierarchy: Novartis earns the higher net margin, 25.6% against 21.8%, the higher return on equity, 30% against 25.9%, and converts double the free cash relative to price, 5.8% against 2.9%, with no debt against 0.68 turns. J&J's 2% dividend and device-pharma breadth are real distinctions; eight multiple turns is what they cost. Two blue-chip pharmas, the stronger current numbers wearing the smaller price, the greater institutional gravity wearing the larger one.
Comparison updated 2026-07-10.
| Metric | JNJ | NVS |
|---|---|---|
| Price | $254.36 | $155.27 |
| Market cap | $622.0B | $301.1B |
| Sector | Drug Manufacturers | Drug Manufacturers |
| Stage | Mature | Mature |
| Implied growth (priced in) | — | +8.3% |
| P/E | 29.5 | 21.5 |
| P/B | 7.66 | 6.47 |
| P/S | 6.45 | 5.52 |
| EV/EBITDA | 326.8 | 16.4 |
| Revenue growth | +7.9% | +6.4% |
| Gross margin | 66.3% | 78.8% |
| Operating margin | — | 32.4% |
| Net margin | 21.8% | 25.6% |
| Return on equity | 25.9% | 30.0% |
| Return on assets | 10.5% | 12.6% |
| Return on invested capital | — | 32.4% |
| FCF yield | 2.9% | 5.8% |
| Dividend yield | 2.0% | — |
| Debt / equity | 0.68 | 0.00 |
| Current ratio | 1.03 | 1.12 |
| Altman Z (solvency) | 4.78 | 3.86 |
| Piotroski F (quality) | 5 / 9 | 8 / 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.