WallStSmart

Alnylam Pharmaceuticals Inc (ALNY)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1938% more annual revenue ($97.93B vs $4.80B). JNJ leads profitability with a 21.5% profit margin vs 16.1%. ALNY appears more attractively valued with a PEG of 0.34. ALNY earns a higher WallStSmart Score of 68/100 (B-).

ALNY

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 8.5Value: 8.0Quality: 6.0
Piotroski: 4/9Altman Z: -0.02

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

ALNYUndervalued (+87.5%)

Margin of Safety

+87.5%

Fair Value

$2584.41

Current Price

$248.68

$2335.73 discount

UndervaluedFair: $2584.41Overvalued
JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$266.38

$125.81 premium

UndervaluedFair: $140.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALNY3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3410/10

Growing faster than its price suggests

Return on EquityProfitability
59.7%10/10

Every $100 of equity generates 60 in profit

Revenue GrowthGrowth
66.9%10/10

Revenue surging 66.9% year-over-year

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

ALNY4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

P/E RatioValuation
45.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
24.6x2/10

Trading at 24.6x book value

Altman Z-ScoreHealth
-0.022/10

Distress zone — elevated risk

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 : ALNY

The strongest argument for ALNY centers on PEG Ratio, Return on Equity, Revenue Growth. Profitability is solid with margins at 16.1% and operating margin at 17.9%. Revenue growth of 66.9% 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 : ALNY

The primary concerns for ALNY are EPS Growth, P/E Ratio, Price/Book. A P/E of 45.2x leaves little room for execution misses.

Bear Case : JNJ

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

Key Dynamics to Monitor

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

ALNY carries more volatility with a beta of 0.30 — expect wider price swings.

ALNY is growing revenue faster at 66.9% — sustainability is the question.

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

Bottom Line

ALNY scores higher overall (68/100 vs 59/100), backed by strong 16.1% margins and 66.9% revenue growth. Both earn "Strong 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.

Alnylam Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, focuses on discovering, developing and commercializing RNA interference (RNAi) therapies. The company is headquartered in Cambridge, Massachusetts.

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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