Johnson & Johnson (NYSE: JNJ) and Immune Pharmaceuticals (NASDAQ:IMNP) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Dividends

Johnson & Johnson pays an annual dividend of $3.36 per share and has a dividend yield of 2.6%. Immune Pharmaceuticals does not pay a dividend. Johnson & Johnson pays out 56.8% of its earnings in the form of a dividend. Immune Pharmaceuticals has raised its dividend for 54 consecutive years.

Earnings and Valuation

This table compares Johnson & Johnson and Immune Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Johnson & Johnson $72.53 billion 4.85 $25.15 billion $5.92 21.92
Immune Pharmaceuticals N/A N/A -$12.48 million ($6.87) -0.23

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

Analyst Recommendations

This is a summary of current ratings and price targets for Johnson & Johnson and Immune Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Johnson & Johnson 4 7 7 0 2.17
Immune Pharmaceuticals 0 0 1 0 3.00

Johnson & Johnson presently has a consensus target price of $134.35, indicating a potential upside of 3.55%. Immune Pharmaceuticals has a consensus target price of $3.00, indicating a potential upside of 88.18%. Given Immune Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Immune Pharmaceuticals is more favorable than Johnson & Johnson.

Institutional and Insider Ownership

65.9% of Johnson & Johnson shares are held by institutional investors. Comparatively, 3.4% of Immune Pharmaceuticals shares are held by institutional investors. 0.2% of Johnson & Johnson shares are held by insiders. Comparatively, 6.7% of Immune Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Johnson & Johnson has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Immune Pharmaceuticals has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Profitability

This table compares Johnson & Johnson and Immune Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Johnson & Johnson 22.52% 26.76% 13.19%
Immune Pharmaceuticals N/A -552.76% -107.04%

Summary

Johnson & Johnson beats Immune Pharmaceuticals on 9 of the 15 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 Immune Pharmaceuticals

Immune Pharmaceuticals Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in the development and commercialization of targeted therapeutics in the fields of immuno-inflammation and immuno-oncology. The Company’s segment is acquiring, developing and commercializing prescription drug products. Its Immuno-inflammation product pipeline includes bertilimumab, a fully human antibody targeting eotaxin-1, a regulator of immuno-inflammation; a portfolio of immune oncology products, and NanoCyclo, a topical nanocapsule formulation of cyclosporine-A, for the treatment of atopic dermatitis and psoriasis. Its immuno-oncology pipeline includes Ceplene, a small molecule targeting the Histamine-2 Receptor to overcome immunosuppression in Acute Myeloid Leukemia and other malignancies. Azixa and crolibulin are vascular disrupting agents. NanomAbs is a technology platform that allows the targeted delivery of chemotherapeutics into cancer cells.

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