Johnson & Johnson (JNJ) vs Merck & Company Inc (MRK)

A side-by-side look at how these two compare on valuation, profitability and shareholder returns.

Johnson & Johnson vs Merck & Company at a glance

Both companies operate in the Health Care sector, so these figures are broadly like-for-like.

MetricJNJMRK
Market cap$654.04B$366.72B
Price$268.04$148.35
P/E ratio (TTM)18.7414.18
P/B ratio (MRQ)6.164.92
P/S ratio (TTM)5.333.98
Revenue growth (1Y)6.05%1.31%
Return on equity (TTM)32.87%34.70%
Return on invested capital (TTM)16.26%22.71%
Gross margin (TTM)75.17%82.44%
Net margin (TTM)21.48%13.59%
Dividend yield (TTM)2.00%2.29%

How they differ

Johnson & Johnson is the larger company at $654.04B versus $366.72B — about 1.8x the size.

On trailing earnings, Merck & Company is the cheaper of the two at 14.18 against 18.74 for Johnson & Johnson.

On sales, Merck & Company is the cheaper of the two at 3.98 against 5.33 for Johnson & Johnson.

Johnson & Johnson leads on revenue growth over the past year, 6.05% against 1.31%.

Merck & Company leads on return on invested capital, 22.71% against 16.26%.

Merck & Company leads on gross margin, 82.44% against 75.17%.

Merck & Company offers the higher yield at 2.29% against 2.00%.

Go deeper

Ratios describe the past. Whether either is worth owning depends on what you pay today.

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