Align Technology Inc (ALGN)vsJohnson & Johnson (JNJ)
ALGN
Align Technology Inc
$173.66
+2.71%
HEALTHCARE · Cap: $12.11B
JNJ
Johnson & Johnson
$259.24
+0.88%
HEALTHCARE · Cap: $614.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 2266% more annual revenue ($97.93B vs $4.14B). JNJ leads profitability with a 21.5% profit margin vs 10.0%. ALGN appears more attractively valued with a PEG of 0.80. JNJ earns a higher WallStSmart Score of 57/100 (C).
ALGN
Buy56
out of 100
Grade: C
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.9%
Fair Value
$294.47
Current Price
$173.66
$120.81 discount
Margin of Safety
-84.8%
Fair Value
$139.37
Current Price
$259.24
$119.87 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
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
Moderate valuation
4.3% revenue growth
Earnings declined 12.1%
Moderate valuation
Expensive relative to growth rate
Earnings declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : ALGN
The strongest argument for ALGN centers on Debt/Equity, PEG Ratio, Price/Book. PEG of 0.80 suggests the stock is reasonably priced for its growth.
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 : ALGN
The primary concerns for ALGN are P/E Ratio, Revenue Growth, EPS Growth.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
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 6.6% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 56/100), backed by strong 21.5% margins. ALGN offers better value entry with a 32.9% margin of safety. 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?