WallStSmart

Abbott Laboratories (ABT)vsJohnson & Johnson (JNJ)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 106% more annual revenue ($99.33B vs $48.23B). JNJ leads profitability with a 16.2% profit margin vs 9.8%. ABT appears more attractively valued with a PEG of 1.52. JNJ earns a higher WallStSmart Score of 54/100 (C-).

ABT

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.71

JNJ

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABTSignificantly Overvalued (-43.6%)

Margin of Safety

-43.6%

Fair Value

$76.57

Current Price

$109.96

$33.39 premium

UndervaluedFair: $76.57Overvalued

Intrinsic value data unavailable for JNJ.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABT2 strengths · Avg: 8.5/10
Market CapQuality
$184.98B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.22B8/10

Generating 1.2B in free cash flow

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$657.68B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

Areas to Watch

ABT3 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

P/E RatioValuation
39.5x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-43.7%2/10

Earnings declined 43.7%

JNJ4 concerns · Avg: 2.8/10
Price/BookValuation
8.2x4/10

Trading at 8.2x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.072/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ABT

The strongest argument for ABT centers on Market Cap, Free Cash Flow. Revenue growth of 14.5% demonstrates continued momentum.

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.7%.

Bear Case : ABT

The primary concerns for ABT are PEG Ratio, P/E Ratio, EPS Growth.

Bear Case : JNJ

The primary concerns for JNJ are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.

Key Dynamics to Monitor

ABT profiles as a value stock while JNJ is a mature play — different risk/reward profiles.

ABT carries more volatility with a beta of 0.58 — expect wider price swings.

ABT is growing revenue faster at 14.5% — sustainability is the question.

JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (54/100 vs 52/100), backed by strong 16.2% margins. Both earn "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.

Abbott Laboratories

HEALTHCARE · MEDICAL DEVICES · USA

Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in 1888 to formulate known drugs; today, it sells medical devices, diagnostics, branded generic medicines and nutritional products. It split off its research-based pharmaceuticals business into AbbVie in 2013.

Visit Website →

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.

Visit Website →

Want to dig deeper into these stocks?