Amgen Inc (AMGN)vsJohnson & Johnson (JNJ)
AMGN
Amgen Inc
$351.48
-0.44%
HEALTHCARE · Cap: $197.43B
JNJ
Johnson & Johnson
$237.28
+0.13%
HEALTHCARE · Cap: $573.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 156% more annual revenue ($94.19B vs $36.75B). JNJ leads profitability with a 28.5% profit margin vs 21.0%. JNJ appears more attractively valued with a PEG of 1.70. JNJ earns a higher WallStSmart Score of 71/100 (B).
AMGN
Strong Buy70
out of 100
Grade: B-
JNJ
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+47.5%
Fair Value
$666.90
Current Price
$351.48
$315.42 discount
Margin of Safety
+53.9%
Fair Value
$515.74
Current Price
$237.28
$278.46 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 106 in profit
Strong operational efficiency at 30.5%
Earnings expanding 112.1% YoY
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 21.9x book value
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AMGN
The strongest argument for AMGN centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 21.0% and operating margin at 30.5%.
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 : AMGN
The primary concerns for AMGN are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Key Dynamics to Monitor
AMGN carries more volatility with a beta of 0.42 — expect wider price swings.
JNJ is growing revenue faster at 9.1% — sustainability is the question.
JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
JNJ scores higher overall (71/100 vs 70/100), backed by strong 28.5% margins. AMGN offers better value entry with a 47.5% margin of safety. 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.
Amgen Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Amgen Inc. (formerly Applied Molecular Genetics Inc.) is an American multinational biopharmaceutical company headquartered in Thousand Oaks, California. Focused on molecular biology and biochemistry, its goal is to provide a healthcare business based on recombinant DNA technology.
Visit Website →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 DRUG MANUFACTURERS - GENERAL Stocks
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