Finally, it’s worth taking a quick look at the analysts’ thoughts: Johnson & Johnson’s analysts are split, with six strong buy ratings, seven buys, eight holds and two underperforms, while Procter & Gamble’s analysts have seven strong buy ratings, six buys and 12 holds.
For many people, these two companies are attractive potential investments. However, the decision on which to buy may be difficult, as both have pros and cons, and forecasting future performance is a guessing game. Additionally, others may be concerned about diversification and not want to put money into one of these stocks specifically. For these people, there are many ETFs that will allow you to own both of these companies, while remaining diversified amongst many companies and gaining exposure to a wider portfolio.
One of the best options is iShares Morningstar Large Core Index Fund. The underlying index of this fund gauges the performance large cap stocks trading on the major exchanges that meet growth and value objectives as determined by the index. The fund holds 86 stocks with Johnson & Johnson (6%) as the second largest holding and Procter & Gamble (5.39%) as the third largest. Other companies this ETF has in its top 10 holdings include Microsoft, Berkshire Hathaway, Wells Fargo, Wal-Mart, PepsiCo, Amgen, United Technologies and CVS Caremark.
The Takeaway
Overall, Procter & Gamble and Johnson & Johnson are both attractive investments, and both provide a good outlook for future growth. Hopefully the above anaylsis can help guide your decision making, and if you still cannot reach a decision, you can opt for one of the ETFs discussed above. The important message here is to make sure your portfolio has exposure to a variety of markets and that you stay up to date on all of the opportunities available.
Daniel Murray has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson and Procter & Gamble. The Motley Fool owns shares of Johnson & Johnson.
Additional Disclosure: Catalyst Capital is not a registered investment advisor or broker/dealer. Readers are advised that the material contained herein should be used solely for informational purposes. This information is not investment advice or a recommendation or solicitation to buy or sell any securities. Catalyst Capital does not purport to tell or suggest which investment securities readers should buy or sell. Readers should conduct their own research and due diligence and obtain professional advice before making investment decision. Catalyst Capital or anyone associated with Catalyst Capital will not be liable for any loss or damage caused by information obtained in our materials. Readers are solely responsible for their own investment decisions. Investing involves risk, including the loss of principal.
The article Take Your Pick: PG vs JNJ originally appeared on Fool.com and is written by Daniel Murray.
Daniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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