Johnson & Johnson (JNJ) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Johnson & Johnson and Microsoft Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 28, 2026. Differences are shown without an overall score or investment verdict.
Different business models: JNJ is classified in Healthcare; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
JNJ
Johnson & Johnson
$266.73HealthcareDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — JNJ vs MSFT
growth of $100 · dividends reinvested · last 30yJNJ +2166.3%MSFT +7530.9%MSFT compounded faster
JNJ MSFT
JNJ vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $642.79B market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 30.82 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 21.48% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 2.93% CAGR).
- •JNJ pays the higher dividend yield (1.97% vs 0.91%).
Metrics side by side
Valuation
| Metric | JNJ | MSFT |
|---|---|---|
| P/E ratio | 30.82 | 23.16 |
| Forward P/E | 22.76 | 22.87 |
| P/S ratio | 6.63 | 9.10 |
| P/B ratio | 7.64 | 6.99 |
| PEG ratio | 0.21 | 2.34 |
| EV / EBITDA | 19.98 | 15.53 |
| FCF yield | 3.48% | 2.52% |
Profitability
| Metric | JNJ | MSFT |
|---|---|---|
| Gross margin | 70.45% | 68.31% |
| Operating margin | 26.81% | 46.80% |
| Net margin | 21.48% | 39.34% |
| ROE | 24.76% | 30.22% |
| ROIC | 13.71% | 21.63% |
Dividends
| Metric | JNJ | MSFT |
|---|---|---|
| Dividend yield | 1.97% | 0.91% |
| Payout ratio | 47.51% | 25.99% |
Growth (annualized)
| Metric | JNJ | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 2.93% | 14.75% |
| EPS CAGR (5Y) | 11.51% | 18.68% |
| FCF CAGR (5Y) | -0.49% | 6.27% |
| Total return CAGR (5Y) | 12.13% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, JNJ or MSFT?
- MSFT has the lower trailing P/E: JNJ trades at 30.82 and MSFT at 23.16. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, JNJ or MSFT?
- Over the past five years, MSFT grew revenue faster — JNJ at a 2.93% CAGR versus MSFT at 14.75%.
- Does JNJ or MSFT pay a bigger dividend?
- JNJ yields 1.97% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is JNJ or MSFT more profitable?
- MSFT runs the higher net margin — JNJ at 21.48% versus MSFT at 39.34%.
- How have JNJ and MSFT total returns compared?
- Over the past 10 years, JNJ delivered 10.85% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Johnson & Johnson P/E ratioMicrosoft P/E ratioJohnson & Johnson dividend yieldMicrosoft dividend yieldJohnson & Johnson ROEMicrosoft ROEJohnson & Johnson operating marginMicrosoft operating marginJohnson & Johnson revenue growthMicrosoft revenue growthJohnson & Johnson free cash flowMicrosoft free cash flow
Johnson & Johnson & Microsoft appear in these rankings
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Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified July 28, 2026.