Head to Head Contrast: Journey Medical (NASDAQ:DERM) and Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson (NYSE:JNJ) and Journey Medical (NASDAQ:DERM) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Volatility and Risk

Johnson & Johnson has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Journey Medical has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Johnson & Johnson	21.48%	32.42%	13.35%
Journey Medical	-8.95%	-20.23%	-6.60%

Valuation & Earnings

This table compares Johnson & Johnson and Journey Medical”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson & Johnson	$94.19 billion	6.91	$26.80 billion	$8.63	31.28
Journey Medical	$61.86 million	3.33	-$11.43 million	($0.22)	-33.23

Johnson & Johnson has higher revenue and earnings than Journey Medical. Journey 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.

Analyst Ratings

This is a summary of current ratings and target prices for Johnson & Johnson and Journey Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson & Johnson	0	6	18	1	2.80
Journey Medical	1	1	2	0	2.25

Johnson & Johnson presently has a consensus price target of $274.13, indicating a potential upside of 1.54%. Journey Medical has a consensus price target of $14.00, indicating a potential upside of 91.52%. Given Journey Medical’s higher probable upside, analysts clearly believe Journey Medical is more favorable than Johnson & Johnson.

Institutional and Insider Ownership

69.6% of Johnson & Johnson shares are held by institutional investors. Comparatively, 7.2% of Journey Medical shares are held by institutional investors. 0.2% of Johnson & Johnson shares are held by insiders. Comparatively, 14.5% of Journey Medical shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Johnson & Johnson beats Journey Medical on 12 of the 15 factors compared between the two stocks.

About Johnson & Johnson

Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension. The MedTech segment includes a portfolio of products used in the interventional solutions, orthopaedics, surgery, and vision categories. The company was founded by Robert Wood Johnson I, James Wood Johnson, and Edward Mead Johnson Sr. in 1887 and is headquartered in New Brunswick, NJ.

About Journey Medical

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.