WallStSmart

ACADIA Pharmaceuticals Inc (ACAD)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 8500% more annual revenue ($97.93B vs $1.14B). ACAD leads profitability with a 33.4% profit margin vs 21.5%. JNJ appears more attractively valued with a PEG of 2.79. ACAD earns a higher WallStSmart Score of 61/100 (C+).

ACAD

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 5.0Quality: 8.5
Piotroski: 4/9Altman Z: 2.14

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ACAD.

JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$265.58

$125.01 premium

UndervaluedFair: $140.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACAD5 strengths · Avg: 9.2/10
Return on EquityProfitability
30.1%10/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
33.4%10/10

Keeps 33 of every $100 in revenue as profit

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
16.4%8/10

16.4% revenue growth

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$640.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

ACAD1 concerns · Avg: 2.0/10
PEG RatioValuation
50.862/10

Expensive relative to growth rate

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : ACAD

The strongest argument for ACAD centers on Return on Equity, Profit Margin, Debt/Equity. Profitability is solid with margins at 33.4% and operating margin at 12.3%. Revenue growth of 16.4% demonstrates continued momentum.

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.5% and operating margin at 29.2%.

Bear Case : ACAD

The primary concerns for ACAD are PEG Ratio.

Bear Case : JNJ

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

Key Dynamics to Monitor

ACAD profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.

ACAD carries more volatility with a beta of 0.86 — expect wider price swings.

ACAD is growing revenue faster at 16.4% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

ACAD scores higher overall (61/100 vs 59/100), backed by strong 33.4% margins and 16.4% revenue growth. 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.

ACADIA Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

ACADIA Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of small molecule drugs that address unmet medical needs in central nervous system disorders. The company is headquartered in San Diego, California.

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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