Johnson & Johnson (JNJ) vs. Apricus Biosciences (APRI) Critical Analysis

Apricus Biosciences (NASDAQ: APRI) and Johnson & Johnson (NYSE:JNJ) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Apricus Biosciences and Johnson & Johnson, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apricus Biosciences 0 0 2 0 3.00
Johnson & Johnson 4 6 8 0 2.22

Apricus Biosciences currently has a consensus price target of $5.00, suggesting a potential upside of 110.08%. Johnson & Johnson has a consensus price target of $145.59, suggesting a potential upside of 10.78%. Given Apricus Biosciences’ stronger consensus rating and higher probable upside, analysts plainly believe Apricus Biosciences is more favorable than Johnson & Johnson.

Insider and Institutional Ownership

24.0% of Apricus Biosciences shares are held by institutional investors. Comparatively, 65.7% of Johnson & Johnson shares are held by institutional investors. 3.6% of Apricus Biosciences shares are held by company insiders. Comparatively, 0.2% of Johnson & Johnson shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Johnson & Johnson pays an annual dividend of $3.36 per share and has a dividend yield of 2.6%. Apricus Biosciences does not pay a dividend. Johnson & Johnson pays out 861.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apricus Biosciences has increased its dividend for 55 consecutive years.

Earnings and Valuation

This table compares Apricus Biosciences and Johnson & Johnson’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apricus Biosciences $5.76 million 6.29 -$7.43 million ($0.93) -2.56
Johnson & Johnson $76.45 billion 4.62 $1.30 billion $0.39 336.97

Johnson & Johnson has higher revenue and earnings than Apricus Biosciences. Apricus Biosciences is trading at a lower price-to-earnings ratio than Johnson & Johnson, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Apricus Biosciences and Johnson & Johnson’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apricus Biosciences N/A -527.09% -126.76%
Johnson & Johnson 1.70% 27.80% 13.26%

Risk & Volatility

Apricus Biosciences has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Johnson & Johnson has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Summary

Johnson & Johnson beats Apricus Biosciences on 11 of the 17 factors compared between the two stocks.

About Apricus Biosciences

Apricus Biosciences, Inc. is a pharmaceutical company, which develops pharmaceutical products. The Company primarily focuses on the development and commercialization of products and product candidates in the areas of urology and rheumatology. The Company’s drug delivery technology is a permeation enhancer called NexACT. The Company has over two product candidates in Phase II development, fispemifene for the treatment of symptomatic male secondary hypogonadism and RayVa for the treatment of Raynaud’s phenomenon, secondary to scleroderma. The Company has a commercial product, Vitaros for the treatment of erectile dysfunction (ED), which is in development in the United States, approved in Canada and marketed throughout Europe.

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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