Opko Health (NASDAQ: OPK) and Johnson & Johnson (NYSE:JNJ) are both mid-cap pharmaceuticals – nec companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.
Volatility and Risk
Opko Health has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500. Comparatively, Johnson & Johnson has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
This is a breakdown of recent ratings for Opko Health and Johnson & Johnson, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Johnson & Johnson||4||5||10||0||2.32|
Opko Health currently has a consensus target price of $14.81, suggesting a potential upside of 181.61%. Johnson & Johnson has a consensus target price of $143.56, suggesting a potential upside of 2.72%. Given Opko Health’s stronger consensus rating and higher probable upside, equities analysts clearly believe Opko Health is more favorable than Johnson & Johnson.
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. Opko Health has raised its dividend for 54 consecutive years.
Earnings & Valuation
This table compares Opko Health and Johnson & Johnson’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Opko Health||$1.22 billion||2.41||-$25.08 million||($0.19)||-27.68|
|Johnson & Johnson||$71.89 billion||5.22||$16.54 billion||$5.76||24.26|
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.
This table compares Opko Health and Johnson & Johnson’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%|
Insider & Institutional Ownership
22.7% of Opko Health shares are held by institutional investors. Comparatively, 65.9% of Johnson & Johnson shares are held by institutional investors. 40.2% of Opko Health shares are held by insiders. Comparatively, 0.2% of Johnson & Johnson shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Johnson & Johnson beats Opko Health on 10 of the 16 factors compared between the two stocks.
About Opko Health
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.
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.
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