AstraZeneca PLC (AZN)vsJohnson & Johnson (JNJ)
AZN
AstraZeneca PLC
$188.93
+0.27%
HEALTHCARE · Cap: $296.55B
JNJ
Johnson & Johnson
$237.28
+0.13%
HEALTHCARE · Cap: $573.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 60% more annual revenue ($94.19B vs $58.74B). JNJ leads profitability with a 28.5% profit margin vs 17.4%. AZN appears more attractively valued with a PEG of 1.56. JNJ earns a higher WallStSmart Score of 71/100 (B).
AZN
Buy64
out of 100
Grade: C+
JNJ
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.8%
Fair Value
$306.07
Current Price
$188.93
$117.14 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
Mega-cap, among the largest globally
Earnings expanding 53.9% YoY
Every $100 of equity generates 23 in profit
Strong operational efficiency at 21.6%
Generating 1.4B in free cash flow
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
4.1% revenue growth
Distress zone — elevated risk
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AZN
The strongest argument for AZN centers on Market Cap, EPS Growth, Return on Equity. Profitability is solid with margins at 17.4% and operating margin at 21.6%.
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 : AZN
The primary concerns for AZN are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Key Dynamics to Monitor
AZN profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
JNJ carries more volatility with a beta of 0.33 — 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.
Bottom Line
JNJ scores higher overall (71/100 vs 64/100), backed by strong 28.5% margins. AZN offers better value entry with a 32.8% margin of safety. Both earn "Strong 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.
AstraZeneca PLC
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
AstraZeneca PLC discovers, develops, manufactures and markets prescription drugs in the areas of oncology, cardiovascular, renal and metabolism, respiratory, infections, neuroscience and gastroenterology worldwide. The company is headquartered in Cambridge, the United Kingdom.
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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