Otsuka (OTCMKTS:OTSKF – Get Free Report) and Johnson & Johnson (NYSE:JNJ – Get Free Report) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Otsuka and Johnson & Johnson, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Otsuka | 0 | 0 | 0 | 0 | N/A |
| Johnson & Johnson | 0 | 8 | 6 | 0 | 2.43 |
Johnson & Johnson has a consensus target price of $168.75, indicating a potential upside of 8.76%. Given Johnson & Johnson’s higher possible upside, analysts clearly believe Johnson & Johnson is more favorable than Otsuka.
Profitability
This table compares Otsuka and Johnson & Johnson’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Otsuka | N/A | N/A | N/A |
| Johnson & Johnson | 36.32% | 37.14% | 14.80% |
Institutional and Insider Ownership
12.2% of Otsuka shares are owned by institutional investors. Comparatively, 68.4% of Johnson & Johnson shares are owned by institutional investors. 0.2% of Johnson & Johnson shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Otsuka and Johnson & Johnson’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Otsuka | N/A | N/A | N/A | $301.82 | 0.13 |
| Johnson & Johnson | $98.66 billion | 3.79 | $17.94 billion | $13.47 | 11.52 |
Johnson & Johnson has higher revenue and earnings than Otsuka. Otsuka is trading at a lower price-to-earnings ratio than Johnson & Johnson, indicating that it is currently the more affordable of the two stocks.
Dividends
Otsuka pays an annual dividend of $55.78 per share and has a dividend yield of 142.5%. Johnson & Johnson pays an annual dividend of $4.76 per share and has a dividend yield of 3.1%. Otsuka pays out 18.5% of its earnings in the form of a dividend. Johnson & Johnson pays out 35.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Johnson & Johnson has raised its dividend for 61 consecutive years. Otsuka is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Johnson & Johnson beats Otsuka on 10 of the 13 factors compared between the two stocks.
About Otsuka
Otsuka Holdings Co., Ltd. engages in pharmaceuticals, nutraceuticals, consumer products, and other businesses worldwide. The company develops pharmaceutical products in the fields of psychiatry, neurology, oncology, cardiovascular and renal system, digestive system, ophthalmology, diagnostics, and intravenous solutions, as well as medical devices businesses. It also provides BODYMAINTÉ Jelly, a conditioning food product; BODYMAINTÉ Drink, a conditioning beverage; EQUELLE and EQUELLE Gelée, which supports women’s health and beauty; POCARI SWEAT, a drink; Calorie Mate, a nutritional food; and OS-1, an oral rehydration solution. In addition, the company offers soft drinks, food products, and wines; clinical testing and medical equipment; cosmetics; warehousing and transport services; chemical products; travel agency services; analysis and measurement equipment; pharmaceutical intermediates; testing equipment, such as vehicle headlight testers; synthetic resin molded products; venture capital services; paper products; artificial turf; ceramic boards, ceramic board masterpiece arts, ceramic walls, reliefs, terracotta, OT ceramics, and ceramic portraits and sign boards; functional films; IT solution services; insecticides and toiletry products; and flaky titanate and special compounds. Further, it provides infusion and clinical nutrition products; Xenotransplantation products; hydrazine; plant-based food products, including cheese alternatives, dressings, and desserts; stable isotopes; software and services to enhance management of mental healthcare systems; products for urinary tract health; potassium titanate; bio-pesticides; functional and dietetic foods; spring and mineral water; industrial chemicals; polyolefin foams; anticancer drugs; and adhesive tapes. Additionally, the company operates a hotel. Otsuka Holdings Co., Ltd. was founded in 1921 and is based in Tokyo, Japan.
About Johnson & Johnson
Johnson & Johnson, together with its subsidiaries, researches, develops, manufactures, and sells various products in the healthcare field worldwide. The company’s Consumer Health segment provides skin health/beauty products under the AVEENO, CLEAN & CLEAR, DR. CI:LABO, NEUTROGENA, and OGX brands; baby care products under the JOHNSON’S and AVEENO Baby brands; oral care products under the LISTERINE brand; TYLENOL acetaminophen products; SUDAFED cold, flu, and allergy products; BENADRYL and ZYRTEC allergy products; MOTRIN IB ibuprofen products; NICORETTE smoking cessation products; and PEPCID acid reflux products. This segment also offers STAYFREE and CAREFREE sanitary pads; o.b. tampons; adhesive bandages under the BAND-AID brand; and first aid products under the NEOSPORIN brand. It serves general public, retail outlets, and distributors. The company’s Pharmaceutical segment provides products for rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis; HIV/AIDS infectious diseases; mood disorders, neurodegenerative disorders, and schizophrenia; prostate cancer, hematologic malignancies, lung cancer, and bladder cancer; thrombosis, diabetes, and macular degeneration; and pulmonary arterial hypertension. This segment serves retailers, wholesalers, distributors, hospitals, and healthcare professionals directly for prescription use. Its MedTech segment offers electrophysiology products to treat cardiovascular diseases; neurovascular care products to treat hemorrhagic and ischemic stroke; orthopaedics products in support of hips, knees, trauma, spine, sports, and other; advanced and general surgery solutions that focus on breast aesthetics, ear, nose, and throat procedures; and contact lenses and ophthalmic technologies related to cataract and laser refractive surgery under the ACUVUE brand. This segment serves wholesalers, hospitals, and retailers. Johnson & Johnson was founded in 1886 and is based in New Brunswick, New Jersey.
Receive News & Ratings for Otsuka Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Otsuka and related companies with MarketBeat.com’s FREE daily email newsletter.
