Johnson & Johnson (NYSE: JNJ) and Rockwell Medical (NASDAQ:RMTI) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitabiliy, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.
Earnings and Valuation
This table compares Johnson & Johnson and Rockwell Medical’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Johnson & Johnson||$72.17 billion||5.01||$25.12 billion||$5.95||22.58|
|Rockwell Medical||$54.25 million||7.48||-$19.87 million||($0.39)||-19.97|
Johnson & Johnson has higher revenue and earnings than Rockwell Medical. Rockwell Medical is trading at a lower price-to-earnings ratio than Johnson & Johnson, indicating that it is currently the more affordable of the two stocks.
This table compares Johnson & Johnson and Rockwell Medical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Johnson & Johnson||22.87%||26.50%||13.38%|
This is a breakdown of current ratings and price targets for Johnson & Johnson and Rockwell Medical, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Johnson & Johnson||0||10||7||0||2.41|
Johnson & Johnson currently has a consensus price target of $130.99, suggesting a potential downside of 2.50%. Rockwell Medical has a consensus price target of $8.50, suggesting a potential upside of 9.11%. Given Rockwell Medical’s higher probable upside, analysts clearly believe Rockwell Medical is more favorable than Johnson & Johnson.
Insider and Institutional Ownership
66.8% of Johnson & Johnson shares are owned by institutional investors. Comparatively, 20.9% of Rockwell Medical shares are owned by institutional investors. 0.2% of Johnson & Johnson shares are owned by insiders. Comparatively, 15.9% of Rockwell Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Johnson & Johnson pays an annual dividend of $3.36 per share and has a dividend yield of 2.5%. Rockwell Medical does not pay a dividend. Johnson & Johnson pays out 56.5% of its earnings in the form of a dividend. Rockwell Medical has raised its dividend for 54 consecutive years.
Risk & Volatility
Johnson & Johnson has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500.
Johnson & Johnson beats Rockwell Medical on 10 of the 16 factors compared between the two stocks.
About Johnson & Johnson
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.
About Rockwell Medical
Rockwell Medical, Inc. (Rockwell) is a biopharmaceutical company targeting end-stage renal disease (ESRD) and chronic kidney disease (CKD) with products and services for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis. The Company operates through the hemodialysis market segment, which involves the manufacture, sale and distribution of hemodialysis products to hemodialysis clinics, including pharmaceutical, dialysis concentrates, dialysis kits and other ancillary products used in the dialysis process. The Company’s drug products include Triferic (ferric pyrophosphate citrate) and Calcitriol (Active Vitamin D) Injection. Triferic is an iron compound that is delivered to hemodialysis patients through dialysate, replacing the iron loss that occurs during their dialysis treatment. Calcitriol (active vitamin D) injection is indicated for treatment of secondary hyperparathyroidism in dialysis patients.
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