Alector Inc (ALEC)vsJohnson & Johnson (JNJ)
ALEC
Alector Inc
$2.14
0.00%
HEALTHCARE · Cap: $238.95M
JNJ
Johnson & Johnson
$265.58
-0.29%
HEALTHCARE · Cap: $640.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 706306% more annual revenue ($97.93B vs $13.86M). JNJ leads profitability with a 21.5% profit margin vs 0.0%. JNJ earns a higher WallStSmart Score of 59/100 (C).
ALEC
Avoid17
out of 100
Grade: F
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+28.4%
Fair Value
$2.68
Current Price
$2.14
$0.54 discount
Margin of Safety
-88.9%
Fair Value
$140.57
Current Price
$265.58
$125.01 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
0.0% margin — thin
ROE of -238.9% — below average capital efficiency
Revenue declined 57.8%
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : ALEC
The strongest argument for ALEC centers on Debt/Equity.
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 : ALEC
The primary concerns for ALEC are Market Cap, Profit Margin, Return on Equity.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ALEC profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
ALEC carries more volatility with a beta of 0.65 — expect wider price swings.
JNJ is growing revenue faster at 6.6% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 17/100), backed by strong 21.5% margins. ALEC offers better value entry with a 28.4% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Alector Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Alector, Inc., a clinical-stage biopharmaceutical company, develops therapies for the treatment of neurodegenerative diseases. The company is headquartered in South San Francisco, 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.
Visit Website →Compare with Other BIOTECHNOLOGY Stocks
Want to dig deeper into these stocks?