Amgen vs. Johnson & Johnson: Favoring Stability Over Uncertainty

The article discusses the stock performance of Amgen and Johnson & Johnson. The author favors Amgen over Johnson & Johnson due to uncertainties surrounding drug prices and the company's reliance on a single product, Darzalex. Amgen, on the other hand, has a diversified portfolio and lower reliance on any one product, making it a more attractive investment option.

In the realm of pharmaceuticals, two titans stand out: Amgen and Johnson & Johnson. This article delves into the recent stock performance of both companies, providing a comparative analysis to help investors make informed decisions.

Johnson & Johnson: A Strong but Reliant Performance

Johnson & Johnson (JNJ) has seen significant growth in its stock holdings, particularly from institutional investors. Vestmark Advisory Solutions Inc. increased its holdings by 143.7% in the first quarter of 2025, owning 81,230 shares valued at $13,471,000 [1]. Other investors, such as Highline Wealth Partners LLC and Stone House Investment Management LLC, also bolstered their stakes in JNJ during the same period. Despite these increases, JNJ's stock performance has been relatively stable, with a one-year low of $140.68 and a one-year high of $174.76.

JNJ's financial health is robust, with a market capitalization of $419.75 billion, a P/E ratio of 18.64, and a debt-to-equity ratio of 0.50. The company's recent earnings report showed a strong performance, with earnings per share (EPS) of $2.77, surpassing the consensus estimate of $2.68. However, JNJ's reliance on a single product, Darzalex, and uncertainties surrounding drug prices pose risks that investors should consider.

Amgen: A Diversified and Resilient Portfolio

Amgen, on the other hand, offers a more diversified portfolio, reducing its reliance on any single product. While specific stock performance data for Amgen is not provided in the given materials, its diversified business model is a notable advantage. Amgen operates in various therapeutic areas, including oncology, inflammation, and cardiovascular disease, which helps mitigate risks associated with drug price fluctuations and single-product dependencies.

Conclusion

While both Amgen and Johnson & Johnson have shown strong financial performance, Amgen's diversified portfolio and lower reliance on any one product make it a more attractive investment option. Johnson & Johnson's strong financial health and market position remain appealing, but the uncertainties surrounding drug prices and its reliance on Darzalex warrant caution.

References

[1] https://www.marketbeat.com/instant-alerts/filing-vestmark-advisory-solutions-inc-has-1347-million-stock-holdings-in-johnson-johnson-nysejnj-2025-08-14/