Arrowhead Pharmaceuticals Inc (ARWR)vsJohnson & Johnson (JNJ)
ARWR
Arrowhead Pharmaceuticals Inc
$60.21
+2.00%
HEALTHCARE · Cap: $7.90B
JNJ
Johnson & Johnson
$275.19
+1.53%
HEALTHCARE · Cap: $615.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 14737% more annual revenue ($99.33B vs $669.50M). JNJ leads profitability with a 16.2% profit margin vs -47.8%. JNJ earns a higher WallStSmart Score of 57/100 (C).
ARWR
Avoid32
out of 100
Grade: F
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ARWR.
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$275.19
$131.07 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 171.0% year-over-year
Mega-cap, among the largest globally
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Areas to Watch
Trading at 18.2x book value
Elevated debt levels
ROE of -68.7% — below average capital efficiency
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : ARWR
The strongest argument for ARWR centers on Revenue Growth. Revenue growth of 171.0% demonstrates continued momentum.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.1%.
Bear Case : ARWR
The primary concerns for ARWR are Price/Book, Debt/Equity, Return on Equity. Debt-to-equity of 1.86 is elevated, increasing financial risk.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
ARWR profiles as a hypergrowth stock while JNJ is a mature play — different risk/reward profiles.
ARWR carries more volatility with a beta of 1.30 — expect wider price swings.
ARWR is growing revenue faster at 171.0% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 32/100), backed by strong 16.2% margins. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Arrowhead Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Arrowhead Pharmaceuticals, Inc. develops drugs for the treatment of intractable diseases in the United States. The company is headquartered in Pasadena, 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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