JNJ Stock vs. PFE Stock: Which Pharmaceutical Giant Is A Better Buy?

ARLETA, CA – AUGUST 02: Fernandeno Tataviam Band of Mission Indians, as part of its participation in the Medi-Vaxx Program of the San Fernando Valley, with El Proyecto del Barrio, Los Angeles Mission College, Mission Hospital and FirstMed Ambulance Services conducted one in a series of pop-up COVID-19 vaccination clinics at Montague Charter Academy for the Arts and Sciences in Arleta Monday morning. (Al Seib / Los Angeles Times via Getty Images).

Los Angeles Times via Getty Images

The pharmaceutical powerhouse Johnson & Johnson (NYSE: JNJ) has significantly outperformed its competitor Pfizer (NYSE: PFE) this year. JNJ’s stock has risen by almost 45%, whereas PFE has declined by 6%, greatly exceeding the S&P 500’s 13% increase. This difference in performance results from Johnson & Johnson’s strong strategic execution, in contrast to the challenges Pfizer is facing in a post-pandemic environment. We believe that JNJ stock continues to be a more favorable option compared to Pfizer. We will explore the details in the sections below. However, if you are looking for an investment with less volatility than holding individual stocks like JNJ or PFE, consider the High Quality Portfolio. This portfolio has consistently outperformed its benchmark—a mix of the S&P 500, Russell, and S&P MidCap indexes—and has achieved returns of over 105% since its launch. Why is this the case? Collectively, HQ Portfolio stocks have delivered better returns with lower risk compared to the benchmark index; they have provided a smoother investment experience, as demonstrated by the HQ Portfolio performance metrics.

Johnson & Johnson’s Growth Drivers

The rise in JNJ’s stock is fueled by several positive factors:

1. Strong Earnings & Outlook: JNJ reported impressive Q3 2025 earnings, exceeding sales and profit projections while also raising its full-year guidance. This indicates management’s confidence in ongoing growth.
2. Strategic Acquisitions: Important acquisitions, including Halda Therapeutics (focused on prostate cancer) and Intra-Cellular Therapies (in the neurology sector), have enhanced and strengthened JNJ’s high-growth portfolio.
3. Portfolio Focus: The planned separation of the orthopedics division (DePuy Synthes) is viewed positively, enabling JNJ to concentrate on more rapidly growing, higher-margin fields such as cardiovascular and surgical technologies.
4. Segment Strength: The Innovative Medicines division (driven by drugs such as Darzalex and Tremfya) and the MedTech division (supported by new launches and acquisitions like Abiomed and Shockwave) both exhibited consistent and robust operational growth.

Pfizer’s Downturn

Pfizer’s stock downturn is mainly attributable to:

1. Decreasing COVID-19 Demand: A decline in demand for its key COVID-19 products, Comirnaty and Paxlovid, compared to sales during the pandemic has resulted in a notable revenue gap.
2. Growth Concerns: Ongoing investor worries regarding future growth are amplified by patent expirations, a complicated regulatory landscape (particularly around vaccines), and the recent withdrawal of a weight-loss medication candidate.

On the whole, JNJ stock demonstrates superior revenue growth performance across significant timeframes, improved margins, and a relatively lower valuation compared to PFE stock, indicating that investing in JNJ might be more beneficial.

• JNJ’s quarterly revenue growth was 6.8%, compared to PFE’s -5.9%.
• Additionally, its revenue growth for the Last 12 Months came in at 5.1%, surpassing PFE’s 3.9%.
• JNJ also exhibits stronger profitability across both periods, with an LTM margin of 26.2% and a 3-year average of 26.4%.

See how Johnson & Johnson’s financials compare with its peers, including Pfizer.

These distinctions become even more apparent when examining the financials side by side. The table highlights how JNJ’s fundamentals compare to those of PFE concerning growth, margins, momentum, and valuation multiples.

Valuation & Performance Overview

Valuation & Performance Overview

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See more revenue details:

See more margin details:

Review detailed fundamentals regarding Buy or Sell PFE Stock and Buy or Sell JNJ Stock. Below, we compare market returns and related metrics over the years.

Historical Market Performance

Historical Market Performance

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Still uncertain about choosing between JNJ or PFE? Consider a portfolio strategy.

The Best Investors Think In Portfolios

Individual stock selections can be volatile, but maintaining investment is crucial. A diversified portfolio enables you to remain the course, harness potential growth, and minimize risks. Consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed its benchmark for all-cap stocks (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices), generating robust returns for its investors. Why is this so? The quarterly rebalanced mix of large-, mid-, and small-cap stocks in the RV Portfolio offered a responsive means to capitalize on favorable market trends while also limiting losses during downturns, as outlined in RV Portfolio performance metrics.