Align Technology Inc (ALGN)vsJohnson & Johnson (JNJ)
ALGN
Align Technology Inc
$166.00
+4.16%
HEALTHCARE · Cap: $10.91B
JNJ
Johnson & Johnson
$276.25
+1.43%
HEALTHCARE · Cap: $657.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 2300% more annual revenue ($99.33B vs $4.14B). JNJ leads profitability with a 16.2% profit margin vs 10.0%. ALGN appears more attractively valued with a PEG of 0.64. ALGN earns a higher WallStSmart Score of 56/100 (C).
ALGN
Buy56
out of 100
Grade: C
JNJ
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.3%
Fair Value
$291.64
Current Price
$166.00
$125.64 discount
Margin of Safety
-89.3%
Fair Value
$144.28
Current Price
$276.25
$131.97 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Strong operational efficiency at 25.7%
Generating 6.4B in free cash flow
Areas to Watch
4.3% revenue growth
Earnings declined 12.1%
Trading at 8.2x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ALGN
The strongest argument for ALGN centers on Debt/Equity, PEG Ratio, Price/Book. PEG of 0.64 suggests the stock is reasonably priced for its growth.
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 : ALGN
The primary concerns for ALGN are Revenue Growth, 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
ALGN profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
ALGN carries more volatility with a beta of 1.67 — expect wider price swings.
JNJ is growing revenue faster at 5.9% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
ALGN scores higher overall (56/100 vs 54/100). 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.
Align Technology Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
Align Technology is a manufacturer of 3D digital scanners and the Invisalign clear aligners used in orthodontics. It is headquartered in San Jose, 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 MEDICAL INSTRUMENTS & SUPPLIES Stocks
Want to dig deeper into these stocks?