WallStSmart

Amphastar P (AMPH)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 13286% more annual revenue ($96.36B vs $719.89M). JNJ leads profitability with a 21.8% profit margin vs 13.6%. AMPH appears more attractively valued with a PEG of 2.77. JNJ earns a higher WallStSmart Score of 59/100 (C).

AMPH

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 7.3Quality: 5.0

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMPHUndervalued (+45.5%)

Margin of Safety

+45.5%

Fair Value

$52.50

Current Price

$23.90

$28.60 discount

UndervaluedFair: $52.50Overvalued
JNJSignificantly Overvalued (-40.3%)

Margin of Safety

-40.3%

Fair Value

$160.72

Current Price

$224.62

$63.90 premium

UndervaluedFair: $160.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMPH2 strengths · Avg: 10.0/10
P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$546.90B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

Areas to Watch

AMPH4 concerns · Avg: 2.3/10
Market CapQuality
$974.42M3/10

Smaller company, higher risk/reward

PEG RatioValuation
2.772/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.8%2/10

Revenue declined 1.8%

EPS GrowthGrowth
-31.0%2/10

Earnings declined 31.0%

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.952/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : AMPH

The strongest argument for AMPH centers on P/E Ratio, Price/Book.

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.8% and operating margin at 27.4%.

Bear Case : AMPH

The primary concerns for AMPH are Market Cap, PEG Ratio, Revenue Growth.

Bear Case : JNJ

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

Key Dynamics to Monitor

AMPH profiles as a declining stock while JNJ is a mature play — different risk/reward profiles.

AMPH carries more volatility with a beta of 0.97 — expect wider price swings.

JNJ is growing revenue faster at 9.9% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 52/100), backed by strong 21.8% margins. AMPH offers better value entry with a 45.5% 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.

Amphastar P

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Amphastar Pharmaceuticals, Inc., a specialty pharmaceutical company, develops, manufactures, markets, and sells generic and proprietary injectable, inhalation, and intranasal products in the United States, China, and France. The company is headquartered in Rancho Cucamonga, 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.

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