Should I buy jnj or epd?
8/11/2024 03:42pm
**Analysis of JNJ and EPD Stocks**: Both Johnson & Johnson (JNJ) and Enterprise Products Partners (EPD) appear to be solid investment options, but with some key differences. Here's a detailed comparison to help you make an informed decision:
1. **Valuation Metrics**:
- **JNJ**: The P/E ratio for JNJ is 10.17, indicating a relatively high valuation compared to the industry average. The P/S ratio is 4.41, and the P/B ratio is 5.4.
- **EPD**: The P/E ratio for EPD is 10.84, slightly higher than JNJ's. The P/S ratio is 1.1, and the P/B ratio is 2.23.
|Ticker|Name|Date|P/E(TTM)|P/S|MACD|Price to Book Ratio|code|market_code|
|---|---|---|---|---|---|---|---|---|
|JNJ.N|Johnson & Johnson|20240809|10.170221|4.410808553428473|-0.2131|5.404840473504152|JNJ|169|
|EPD.N|Enterprise Products|20240809|10.842067|1.103093865460468|-0.1866|2.2262088707849514|EPD|169|
2. **Profitability and Growth**:
- **JNJ**: The company has a net income growth rate of -8.9% and a revenue growth rate of 4.31%. The diluted EPS has shown a significant increase of 44.03%.
- **EPD**: The net income growth rate is 10.83%, and the revenue growth rate is 26.59%. The diluted EPS has decreased by 3.03%.
|Ticker|Name|Date|Total Revenue year-on-year growth rate|Diluted EPS QoQ growth rate|Net Income year-on-year growth rate|code|market_code|
|---|---|---|---|---|---|---|---|
|EPD.N|Enterprise Products|20240630|26.589052671110693|-3.030303030303033|10.83398285268901|EPD|169|
|JNJ.N|Johnson & Johnson|20240630|4.312468051489382|44.02985074626864|-8.90357698289269|JNJ|169|
3. **Free Cash Flow and Debt**:
- **JNJ**: The free cash flow is $11.99 billion, and the debt-to-equity ratio is 0.58. This indicates a strong financial position with manageable debt levels.
- **EPD**: The free cash flow is $2.71 billion, and the debt-to-equity ratio is 1.05. The higher debt-to-equity ratio suggests a higher risk profile.
|Ticker|Name|Date|Free Cash Flow|Debt-to-Equity Ratio|code|market_code|
|---|---|---|---|---|---|---|
|JNJ.N|Johnson & Johnson|20240630|1.1987692256E10|0.5799854622717996|JNJ|169|
|EPD.N|Enterprise Products|20240630|2.709091533E9|1.0517229425223602|EPD|169|
4. **Stock Performance and Analyst Ratings**:
- **JNJ**: The stock has a moderate buy consensus with an average price target of $173.14, indicating a potential upside. The 5-day, 10-day, and 50-day moving averages are 159.99, 160.26, and 151.19, respectively.
- **EPD**: The stock has a strong buy consensus with an average price target of $33.70, representing a 17.38% upside potential. The 5-day, 10-day, and 50-day moving averages are 28.7, 28.87, and 28.96, respectively.
|Ticker|Name|Date|Moving Average|code|market_code|
|---|---|---|---|---|---|
|JNJ.N|Johnson & Johnson|20240809|151.1868|JNJ|169|
|EPD.N|Enterprise Products|20240809|28.9576|EPD|169|
5. **Future Outlook**:
- **JNJ**: Johnson & Johnson has set long-term financial targets, including 5-7% operational sales growth from 2025-2030. The company's pipeline and portfolio are expected to deliver significant growth.
- **EPD**: Enterprise Products Partners is expected to benefit from its diversified business model and the growing demand for energy products.
**Conclusion**: Both JNJ and EPD are strong companies with solid financials and growth potential. JNJ appears to be a more stable investment with a higher price target, suggesting potential for capital appreciation. EPD, on the other hand, offers a higher dividend yield and a lower price target, which could be attractive for income-focused investors. Your decision should align with your investment goals and risk tolerance. If you prioritize stability and growth potential, Johnson & Johnson might be the better choice. However, if you're looking for a higher dividend yield and are comfortable with a slightly higher risk profile, Enterprise Products Partners could be a suitable option.