WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 8893% more annual revenue ($96.36B vs $1.07B). ACAD leads profitability with a 36.5% profit margin vs 21.8%. JNJ appears more attractively valued with a PEG of 2.96. ACAD earns a higher WallStSmart Score of 63/100 (C+).

ACAD

Buy

63

out of 100

Grade: C+

Growth: 8.7Profit: 8.0Value: 5.7Quality: 6.0
Piotroski: 3/9

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 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 (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$227.35

$67.22 premium

UndervaluedFair: $160.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACAD4 strengths · Avg: 10.0/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
39.9%10/10

Every $100 of equity generates 40 in profit

Profit MarginProfitability
36.5%10/10

Keeps 37 of every $100 in revenue as profit

EPS GrowthGrowth
86.2%10/10

Earnings expanding 86.2% YoY

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

Areas to Watch

ACAD3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
50.862/10

Expensive relative to growth rate

Free Cash FlowQuality
$-52.74M2/10

Negative free cash flow — burning cash

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : ACAD

The strongest argument for ACAD centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 36.5% and operating margin at 6.1%.

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.8% and operating margin at 27.4%.

Bear Case : ACAD

The primary concerns for ACAD are Piotroski F-Score, PEG Ratio, Free Cash Flow.

Bear Case : JNJ

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

Key Dynamics to Monitor

ACAD carries more volatility with a beta of 0.83 — expect wider price swings.

JNJ is growing revenue faster at 9.9% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Monitor BIOTECHNOLOGY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ACAD scores higher overall (63/100 vs 59/100), backed by strong 36.5% 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.

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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