Johnson & Johnson (NYSE: JNJ) and Opko Health (NASDAQ:OPK) are both mid-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Insider & Institutional Ownership
66.1% of Johnson & Johnson shares are owned by institutional investors. Comparatively, 22.6% of Opko Health shares are owned by institutional investors. 0.2% of Johnson & Johnson shares are owned by company insiders. Comparatively, 40.2% of Opko Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Johnson & Johnson pays an annual dividend of $3.36 per share and has a dividend yield of 2.4%. Opko Health does not pay a dividend. Johnson & Johnson pays out 58.3% of its earnings in the form of a dividend. Johnson & Johnson has increased its dividend for 54 consecutive years.
Valuation & Earnings
This table compares Johnson & Johnson and Opko Health’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Johnson & Johnson||$71.89 billion||5.22||$16.54 billion||$5.76||24.23|
|Opko Health||$1.22 billion||2.51||-$25.08 million||($0.22)||-24.95|
Johnson & Johnson has higher revenue and earnings than Opko Health. Opko Health is trading at a lower price-to-earnings ratio than Johnson & Johnson, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Johnson & Johnson has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Opko Health has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Johnson & Johnson and Opko Health, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Johnson & Johnson||4||5||10||0||2.32|
Johnson & Johnson presently has a consensus price target of $143.56, indicating a potential upside of 2.86%. Opko Health has a consensus price target of $14.81, indicating a potential upside of 169.81%. Given Opko Health’s stronger consensus rating and higher possible upside, analysts clearly believe Opko Health is more favorable than Johnson & Johnson.
This table compares Johnson & Johnson and Opko Health’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Johnson & Johnson||21.28%||27.38%||13.20%|
Johnson & Johnson beats Opko Health on 11 of the 16 factors compared between the two stocks.
Johnson & Johnson Company Profile
Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. It operates through three segments: Consumer, Pharmaceutical and Medical Devices. Its primary focus is products related to human health and well-being. The Consumer segment includes a range of products used in the baby care, oral care, skin care, over-the-counter pharmaceutical, women’s health and wound care markets. The Pharmaceutical segment is focused on five therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, and cardiovascular and metabolic diseases. The Medical Devices segment includes a range of products used in the orthopedic, surgery, cardiovascular, diabetes care and vision care fields. Its research facilities are located in the United States, Belgium, Brazil, Canada, China, France, Germany, India, Israel, Japan, the Netherlands, Singapore, Switzerland and the United Kingdom.
Opko Health Company Profile
OPKO Health, Inc. is a healthcare company. Its segments include Pharmaceutical, Diagnostics and Corporate. Pharmaceutical consists of the pharmaceutical operations in Chile, Mexico, Ireland, Israel and Spain and its pharmaceutical research and development operations. Diagnostics consists of the clinical laboratory operations in Bio-Reference Laboratories (Bio-Reference) and its point-of-care operations. Through Bio-Reference, it operates laboratory divisions, such as Bio-Reference, GenPath (Oncology), GenPath (Women’s Health), GeneDx and Laboratorio Bueno Salud. As of December 31, 2016, it had one commercial stage pharmaceutical product and several pharmaceutical compounds and technologies in various stages of research and development for a range of indications and conditions, including Renal Products, Biologics, hGH-CTP, Factor VII, Oxyntomodulin, active pharmaceutical ingredients, Oligonucleotide Therapeutics, NK-1 Program, Asthma and chronic obstructive pulmonary disease.
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