For the second series of “In The Ring,” Cramer compared Pfizer (PFE) to Johnson & Johnson (JNJ). Cramer gave the drug sector a 3 out of 5 due election risk. He explained that Big Pharma is usually the sector to be in during a slowing economy. However, the sector now has a lack of new drugs and it’s losing patent protection on old drugs as generics eat away at their growth. Also, the Democrats are Big Pharma’s enemy. There’s a good chance they’ll win in November and that posses a great risk to the sector. Cramer compared the growth prospects of both companies. He gave JNJ 2 points for having a more diversified product line and strong growth from its consumer products segment. Pfizer, sold its consumer products division to JNJ. Moving on, Cramer analyzed patent expirations. Johnson is expected to lose $3.8 billion in sales from patent expirations, while Pfizer expects to lose $6.6 billion. Cramer said JNJ wins again here. Finally, Cramer looked at each company’s product pipeline. Johnson has 7 to 10 new products that are expected to hit the market in 2008 or 2010, while Pfizer expects 15 to 20 new drugs. He gave one point to Pfizer in this segment. Finally, Cramer said he likes JNJ’s culture and dislikes Pfizer’s lawyer CEO. He also likes that Warren Buffett owns JNJ. The final score was 6-4, JNJ wins. Cramer explained that Pfizer might look cheap at 7.7 times next year’s estimates, but it isn’t. He said wait for JNJ to drop to $68 if you want in. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com