WallStSmart

Arvinas Inc (ARVN)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 30822% more annual revenue ($97.93B vs $316.70M). JNJ leads profitability with a 21.5% profit margin vs 2.9%. JNJ trades at a lower P/E of 30.9x. JNJ earns a higher WallStSmart Score of 59/100 (C).

ARVN

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 5.0Value: 4.7Quality: 7.5
Piotroski: 6/9Altman Z: -1.30

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

Intrinsic value data unavailable for ARVN.

JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$265.58

$125.01 premium

UndervaluedFair: $140.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARVN4 strengths · Avg: 10.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Operating MarginProfitability
66.4%10/10

Strong operational efficiency at 66.4%

Revenue GrowthGrowth
1015.0%10/10

Revenue surging 1015.0% year-over-year

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

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

ARVN4 concerns · Avg: 3.5/10
P/E RatioValuation
33.8x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$545.20M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.6%3/10

ROE of 1.6% — below average capital efficiency

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 : ARVN

The strongest argument for ARVN centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 1015.0% 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 : ARVN

The primary concerns for ARVN are P/E Ratio, EPS Growth, Market Cap. Thin 2.9% margins leave little buffer for downturns.

Bear Case : JNJ

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

Key Dynamics to Monitor

ARVN profiles as a hypergrowth stock while JNJ is a mature play — different risk/reward profiles.

ARVN carries more volatility with a beta of 1.76 — expect wider price swings.

ARVN is growing revenue faster at 1015.0% — sustainability is the question.

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

Bottom Line

JNJ scores higher overall (59/100 vs 56/100), backed by strong 21.5% margins. 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.

Arvinas Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Arvinas, Inc., a clinical-stage biopharmaceutical company, is dedicated to the discovery, development, and commercialization of therapies to break down disease-causing proteins. The company is headquartered in New Haven, Connecticut.

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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