AbbVie Inc (ABBV)vsJohnson & Johnson (JNJ)
ABBV
AbbVie Inc
$208.34
-1.01%
HEALTHCARE · Cap: $391.56B
JNJ
Johnson & Johnson
$237.28
+0.13%
HEALTHCARE · Cap: $573.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 54% more annual revenue ($94.19B vs $61.16B). JNJ leads profitability with a 28.5% profit margin vs 6.9%. ABBV appears more attractively valued with a PEG of 0.53. JNJ earns a higher WallStSmart Score of 71/100 (B).
ABBV
Buy63
out of 100
Grade: C+
JNJ
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1179.3%
Fair Value
$16.12
Current Price
$208.34
$192.22 premium
Margin of Safety
+53.9%
Fair Value
$515.74
Current Price
$237.28
$278.46 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 62 in profit
Strong operational efficiency at 34.1%
Conservative balance sheet, low leverage
Growing faster than its price suggests
Generating 4.9B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Areas to Watch
6.9% margin — thin
Premium valuation, high expectations priced in
Earnings declined 88.7%
Distress zone — elevated risk
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ABBV
The strongest argument for ABBV centers on Market Cap, Return on Equity, Operating Margin. PEG of 0.53 suggests the stock is reasonably priced for its growth.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 28.5% and operating margin at 24.0%.
Bear Case : ABBV
The primary concerns for ABBV are Profit Margin, P/E Ratio, EPS Growth. A P/E of 93.4x leaves little room for execution misses.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Key Dynamics to Monitor
ABBV profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
ABBV carries more volatility with a beta of 0.33 — expect wider price swings.
ABBV is growing revenue faster at 10.0% — sustainability is the question.
JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (71/100 vs 63/100), backed by strong 28.5% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
AbbVie Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
AbbVie is an American publicly traded biopharmaceutical company founded in 2013. It originated as a spin-off of Abbott Laboratories.
Johnson & Johnson
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.
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