WallStSmart

Advanced Micro Devices Inc (AMD)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 172% more annual revenue ($94.19B vs $34.64B). JNJ leads profitability with a 28.5% profit margin vs 12.5%. AMD appears more attractively valued with a PEG of 0.60. JNJ earns a higher WallStSmart Score of 71/100 (B).

AMD

Strong Buy

65

out of 100

Grade: B-

Growth: 7.3Profit: 6.0Value: 4.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.74

JNJ

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 9.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMDSignificantly Overvalued (-80.3%)

Margin of Safety

-80.3%

Fair Value

$122.15

Current Price

$220.27

$98.12 premium

UndervaluedFair: $122.15Overvalued
JNJUndervalued (+54.5%)

Margin of Safety

+54.5%

Fair Value

$516.67

Current Price

$239.93

$276.74 discount

UndervaluedFair: $516.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMD6 strengths · Avg: 9.3/10
Market CapQuality
$334.84B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
34.1%10/10

Revenue surging 34.1% year-over-year

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.7410/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.608/10

Growing faster than its price suggests

Free Cash FlowQuality
$2.38B8/10

Generating 2.4B in free cash flow

JNJ6 strengths · Avg: 8.8/10
Market CapQuality
$567.22B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.0%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
28.5%9/10

Keeps 28 of every $100 in revenue as profit

Operating MarginProfitability
24.0%8/10

Strong operational efficiency at 24.0%

EPS GrowthGrowth
48.6%8/10

Earnings expanding 48.6% YoY

Free Cash FlowQuality
$5.47B8/10

Generating 5.5B in free cash flow

Areas to Watch

AMD3 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.2%4/10

2.2% earnings growth

Return on EquityProfitability
7.1%3/10

ROE of 7.1% — below average capital efficiency

P/E RatioValuation
78.7x2/10

Premium valuation, high expectations priced in

JNJ1 concerns · Avg: 4.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : AMD

The strongest argument for AMD centers on Market Cap, Revenue Growth, Debt/Equity. Revenue growth of 34.1% demonstrates continued momentum. PEG of 0.60 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 28.5% and operating margin at 24.0%.

Bear Case : AMD

The primary concerns for AMD are EPS Growth, Return on Equity, P/E Ratio. A P/E of 78.7x leaves little room for execution misses.

Bear Case : JNJ

The primary concerns for JNJ are PEG Ratio.

Key Dynamics to Monitor

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

AMD carries more volatility with a beta of 2.02 — expect wider price swings.

AMD is growing revenue faster at 34.1% — sustainability is the question.

JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (71/100 vs 65/100), backed by strong 28.5% margins. Both earn "Strong Buy" and "Strong 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.

Advanced Micro Devices Inc

TECHNOLOGY · SEMICONDUCTORS · USA

Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. AMD's main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations, personal computers and embedded system applications.

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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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