WallStSmart

AstraZeneca PLC (AZN)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 60% more annual revenue ($97.93B vs $61.37B). JNJ leads profitability with a 21.5% profit margin vs 17.0%. AZN appears more attractively valued with a PEG of 1.47. AZN earns a higher WallStSmart Score of 60/100 (C+).

AZN

Buy

60

out of 100

Grade: C+

Growth: 5.3Profit: 8.0Value: 6.0Quality: 5.0
Piotroski: 6/9Altman Z: 1.48

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AZNUndervalued (+13.9%)

Margin of Safety

+13.9%

Fair Value

$196.93

Current Price

$169.64

$27.29 discount

UndervaluedFair: $196.93Overvalued

Intrinsic value data unavailable for JNJ.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AZN4 strengths · Avg: 8.8/10
Market CapQuality
$263.09B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
20.7%9/10

Every $100 of equity generates 21 in profit

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

Free Cash FlowQuality
$2.13B8/10

Generating 2.1B in free cash flow

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$615.36B10/10

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
28.6%8/10

Strong operational efficiency at 28.6%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

AZN3 concerns · Avg: 3.3/10
P/E RatioValuation
25.6x4/10

Moderate valuation

EPS GrowthGrowth
2.5%4/10

2.5% earnings growth

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
29.1x4/10

Moderate valuation

PEG RatioValuation
4.142/10

Expensive relative to growth rate

EPS GrowthGrowth
-1.0%2/10

Earnings declined 1.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : AZN

The strongest argument for AZN centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 17.0% and operating margin at 23.5%. PEG of 1.47 suggests the stock is reasonably priced for its growth.

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 28.6%.

Bear Case : AZN

The primary concerns for AZN are P/E Ratio, EPS Growth, Altman Z-Score.

Bear Case : JNJ

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

Key Dynamics to Monitor

JNJ carries more volatility with a beta of 0.23 — expect wider price swings.

JNJ is growing revenue faster at 6.6% — sustainability is the question.

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

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AZN scores higher overall (60/100 vs 57/100), backed by strong 17.0% 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.

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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