Analyzing Johnson & Johnson (NYSE:JNJ) and Rafael (NYSE:RFL)

Johnson & Johnson (NYSE:JNJ – Get Free Report) and Rafael (NYSE:RFL – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Insider and Institutional Ownership

69.6% of Johnson & Johnson shares are held by institutional investors. Comparatively, 11.3% of Rafael shares are held by institutional investors. 0.2% of Johnson & Johnson shares are held by company insiders. Comparatively, 32.9% of Rafael shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Johnson & Johnson and Rafael, as provided by MarketBeat.com.

Johnson & Johnson presently has a consensus price target of $275.87, suggesting a potential upside of 6.59%. Given Johnson & Johnson’s stronger consensus rating and higher possible upside, research analysts plainly believe Johnson & Johnson is more favorable than Rafael.

Earnings & Valuation

This table compares Johnson & Johnson and Rafael”s top-line revenue, earnings per share (EPS) and valuation.

Johnson & Johnson has higher revenue and earnings than Rafael. Rafael 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 Johnson & Johnson and Rafael’s net margins, return on equity and return on assets.

Volatility & Risk

Johnson & Johnson has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, Rafael has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Summary

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

About Johnson & Johnson

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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 Rafael

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Rafael Holdings, Inc. primarily engages in holding interests in clinical and early-stage pharmaceutical companies, and commercial real estate assets in the United States and Israel. It operates in two segments, Healthcare and Real Estate. The company engages in the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells. Its lead drug candidate is CPI-613 (devimistat), currently under Phase III clinical study for the treatment of metastatic pancreatic cancer and acute myeloid leukemia. The company is also involved in developing Promitil, a molecule designed for the targeted delivery of mitomycin-C in a proprietary prodrug form, completed Phase 1B clinical studies; Folate-targeted Promitil (Promi-Fol) which is aimed at local treatment (intravesical) of superficial bladder cancer; and Promi-Dox, a highly potent dual drug liposome with MLP and doxorubicin targeting a potential basket of tumors. In addition, it engages in the development of surgical and procedural devices, including orthopedic arthroscopy instrumentation. Rafael Holdings, Inc. was incorporated in 2017 and is headquartered in Newark, New Jersey.