WallStSmart

Apellis Pharmaceuticals Inc (APLS)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 8618% more annual revenue ($96.36B vs $1.11B). JNJ leads profitability with a 21.8% profit margin vs 12.1%. JNJ trades at a lower P/E of 25.8x. JNJ earns a higher WallStSmart Score of 59/100 (C).

APLS

Buy

50

out of 100

Grade: C-

Growth: 8.0Profit: 7.5Value: 6.3Quality: 5.5
Piotroski: 5/9Altman Z: -2.39

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

APLSUndervalued (+88.5%)

Margin of Safety

+88.5%

Fair Value

$194.37

Current Price

$41.03

$153.34 discount

UndervaluedFair: $194.37Overvalued
JNJSignificantly Overvalued (-71.4%)

Margin of Safety

-71.4%

Fair Value

$135.80

Current Price

$232.77

$96.97 premium

UndervaluedFair: $135.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APLS2 strengths · Avg: 10.0/10
Return on EquityProfitability
33.2%10/10

Every $100 of equity generates 33 in profit

Revenue GrowthGrowth
60.9%10/10

Revenue surging 60.9% year-over-year

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$536.54B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
25.9%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

APLS4 concerns · Avg: 3.8/10
P/E RatioValuation
38.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.7x4/10

Trading at 12.7x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Debt/EquityHealth
1.183/10

Elevated debt levels

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.912/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : APLS

The strongest argument for APLS centers on Return on Equity, Revenue Growth. Revenue growth of 60.9% 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 21.8% and operating margin at 27.4%.

Bear Case : APLS

The primary concerns for APLS are P/E Ratio, Price/Book, EPS Growth.

Bear Case : JNJ

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

Key Dynamics to Monitor

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

JNJ carries more volatility with a beta of 0.26 — expect wider price swings.

APLS is growing revenue faster at 60.9% — 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 50/100), backed by strong 21.8% margins. APLS offers better value entry with a 88.5% 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.

Apellis Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Apellis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutic compounds through inhibition of the complement system for autoimmune and inflammatory diseases. The company is headquartered in Waltham, Massachusetts.

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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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