Johnson Johnson Book Value Per Share vs. Shares Owned By Institutions

JNJ Stock   138.94  0.18  0.13%   
Considering Johnson Johnson's profitability and operating efficiency indicators, Johnson Johnson may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Johnson Johnson's ability to earn profits and add value for shareholders.
For Johnson Johnson profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Johnson Johnson to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Johnson Johnson utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Johnson Johnson's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Johnson Johnson over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
For more information on how to buy Johnson Stock please use our How to Invest in Johnson Johnson guide.
Please note, there is a significant difference between Johnson Johnson's value and its price as these two are different measures arrived at by different means. Investors typically determine if Johnson Johnson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Johnson Johnson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Johnson Johnson Shares Owned By Institutions vs. Book Value Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Johnson Johnson's current stock value. Our valuation model uses many indicators to compare Johnson Johnson value to that of its competitors to determine the firm's financial worth.
Johnson Johnson is rated fourth overall in book value per share category among its peers. It is rated fifth overall in shares owned by institutions category among its peers producing about  2.44  of Shares Owned By Institutions per Book Value Per Share. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Johnson Johnson's earnings, one of the primary drivers of an investment's value.

Johnson Shares Owned By Institutions vs. Book Value Per Share

Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.

Johnson Johnson

Book Value per Share

 = 

Common Equity

Average Shares

 = 
29.39 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.

Johnson Johnson

Shares Held by Institutions

 = 

Funds and Banks

+

Firms

 = 
71.68 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.

Johnson Shares Owned By Institutions Comparison

Johnson Johnson is rated fourth overall in shares owned by institutions category among its peers.

Johnson Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Johnson Johnson. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Johnson Johnson position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Johnson Johnson's important profitability drivers and their relationship over time.

Use Johnson Johnson in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Johnson Johnson position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Johnson Johnson will appreciate offsetting losses from the drop in the long position's value.

Johnson Johnson Pair Trading

Johnson Johnson Pair Trading Analysis

The ability to find closely correlated positions to Johnson Johnson could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Johnson Johnson when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Johnson Johnson - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Johnson Johnson to buy it.
The correlation of Johnson Johnson is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Johnson Johnson moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Johnson Johnson moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Johnson Johnson can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Johnson Johnson position

In addition to having Johnson Johnson in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Momentum Thematic Idea Now

Momentum
Momentum Theme
Large corporations operating in software, education, financial and car manufacturing industries. The Momentum theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Momentum Theme or any other thematic opportunities.
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Additional Tools for Johnson Stock Analysis

When running Johnson Johnson's price analysis, check to measure Johnson Johnson's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Johnson Johnson is operating at the current time. Most of Johnson Johnson's value examination focuses on studying past and present price action to predict the probability of Johnson Johnson's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Johnson Johnson's price. Additionally, you may evaluate how the addition of Johnson Johnson to your portfolios can decrease your overall portfolio volatility.