Comparison of Anixa Biosciences and Johnson & Johnson

On October 25, 2024, we explore the performance and characteristics of two medical companies: Johnson & Johnson (NYSE:JNJ) and Anixa Biosciences (NASDAQ:ANIX). Although both firms operate in the healthcare sector, they differ significantly in several business aspects. We will analyze these companies based on factors such as profitability, risk, analyst ratings, dividends, institutional ownership, and overall valuation.

Profitability

The following table illustrates the profitability metrics of both companies, focusing on net margins, return on equity, and return on assets.

	Net Margins	Return on Equity	Return on Assets
Johnson & Johnson	46.34%	36.60%	15.01%
Anixa Biosciences	N/A	-54.79%	-50.37%

Volatility & Risk

Johnson & Johnson has a beta value of 0.52. This implies that its stock is 48% less volatile compared to the S&P 500 index. On the other hand, Anixa Biosciences has a beta of 0.86, indicating that it is 14% less volatile than the S&P 500.

Analyst Recommendations

The following table summarizes recent ratings and price targets for both companies as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson & Johnson	0	6	7	0	2.54
Anixa Biosciences	0	0	1	1	3.50

Currently, Johnson & Johnson has a consensus price target of $175.93, suggesting a potential upside of 7.49%. In contrast, Anixa Biosciences holds a consensus price target of $7.00, translating to a remarkable potential upside of 122.22%. Analysts appear to favor Anixa Biosciences over Johnson & Johnson based on these ratings.

Insider and Institutional Ownership

Institutional investors own 69.6% of Johnson & Johnson's shares, whereas Anixa Biosciences has 29.1% of its shares held by institutional investors. Regarding insider ownership, only 0.2% of Johnson & Johnson's shares are held by company insiders, while Anixa Biosciences has a much higher insider ownership at 22.6%. Strong institutional ownership often indicates confidence among large investors that a company can achieve long-term growth.

Valuation and Earnings

The table below compares the gross revenue, earnings per share (EPS), and valuation of both companies.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson & Johnson	$86.58 billion	4.55	$35.15 billion	$16.04	10.20
Anixa Biosciences	$210,000.00	480.09	-$9.81 million	($0.37)	-8.51

Overall, Johnson & Johnson demonstrates significantly higher revenue and earnings compared to Anixa Biosciences. Although Anixa Biosciences is currently trading at a lower price-to-earnings ratio, which may suggest it's a more affordable option, it still faces a challenging financial scenario.

Summary

In summary, Johnson & Johnson emerges as the more established player, outperforming Anixa Biosciences in 9 out of 15 key performance indicators compared between the two.

About Johnson & Johnson

Johnson & Johnson, along with its subsidiaries, is a global leader in research, development, manufacturing, and sales of a variety of healthcare products. Their Innovative Medicine segment focuses on several therapeutic areas including immunology, infectious diseases, neuroscience, oncology, and cardiovascular treatments. The MedTech segment deals with solutions for surgical and orthopaedic needs and includes contact lenses and intraocular lenses. Founded in 1886, the company is headquartered in New Brunswick, New Jersey.

About Anixa Biosciences

Anixa Biosciences specializes in biotechnological innovations aimed at addressing critical needs in oncology and infectious disease treatment. Their portfolio includes development of chimeric antigen receptor T-cell therapy for ovarian cancer and vaccines targeting breast and ovarian cancers. Formerly known as ITUS Corporation, Anixa Biosciences was established in 1982 and is based in San Jose, California.

Health, Business, Investment