Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of a range of products in the healthcare field worldwide. It operates in two segments, Innovative Medicine and MedTech. The Innovative Medicine segment offers products for various therapeutic areas, such as oncology, immunology, neuroscience, pulmonary hypertension, infectious diseases, and cardiovascular and metabolism distributed through …
Full JNJ analysis →
Competitive advantage assessment
Key strengths
Margins Stable Across CyclesOperating margin volatility is low (stability score 1.00), demonstrating pricing resilience across cycles.
Johnson & Johnson ranks #5 of 20
scored companies in Drug Manufacturers - General by moat score — the top 25%.
The widest moat in the group is Novo Nordisk A/S (NVO)
at 74/100.
Moat scores for companies ranked near JNJ in Drug Manufacturers - General
Pricing power is the ability to raise prices without losing volume.
Cost Advantage
Score 53
· 15% of the moat score
A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.
Customer Stickiness
Score 80
· 15% of the moat score
Stickiness is what makes revenue repeat without being re-won every year.
Capital Efficiency
Score 59
· 18% of the moat score
Capital efficiency asks what the company earns on the money tied up in the business.
Resilience
Score 70
· 17% of the moat score
Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.
Scale & Market Position
Score 55
· 15% of the moat score
Scale matters only when it converts into economics.
Johnson & Johnson (JNJ) scores 66 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #5 of 20 scored companies in Drug Manufacturers - General, the top 25%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 19 companies in Drug Manufacturers - General. Its strongest defense is Customer Stickiness (80/100) and its weakest is Cost Advantage (53/100).
How does Johnson & Johnson compare with other Drug Manufacturers - General companies?
Johnson & Johnson ranks #5 of 20 scored companies in Drug Manufacturers - General by moat score. The widest moat in Drug Manufacturers - General is Novo Nordisk A/S (NVO) at 74/100. The companies ranked closest are Merck & Company, Inc. (MRK) at 67 just above it and Bristol-Myers Squibb Company (BMY) at 66 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 19 companies in Drug Manufacturers - General. The defenses are then weighted to produce the overall score out of 100.
Why is Johnson & Johnson scored with the Corporate Default template?
Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.
Which competitive defenses are measured for Johnson & Johnson?
The Corporate Default template measures 6 defenses, and JNJ scores: Pricing Power (77), Cost Advantage (53), Customer Stickiness (80), Capital Efficiency (59), Resilience (70), Scale & Market Position (55). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
We value your privacy
We use cookies to enhance your browsing experience, analyze site traffic, and personalize content. By clicking 'Accept All', you consent to our use of cookies.
Read our cookie policy
Cookie Preferences
Manage your cookie preferences. Essential cookies are always enabled.