WallStSmart

Beam Therapeutics Inc (BEAM)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 68857% more annual revenue ($96.36B vs $139.74M). JNJ leads profitability with a 21.8% profit margin vs -57.2%. JNJ earns a higher WallStSmart Score of 59/100 (C).

BEAM

Avoid

35

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.0Quality: 5.0

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

Intrinsic value data unavailable for BEAM.

JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$229.85

$69.72 premium

UndervaluedFair: $160.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BEAM2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
279.5%10/10

Revenue surging 279.5% year-over-year

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%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

BEAM4 concerns · Avg: 2.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-8.1%2/10

ROE of -8.1% — below average capital efficiency

Free Cash FlowQuality
$-87.02M2/10

Negative free cash flow — burning cash

Profit MarginProfitability
-57.2%1/10

Currently unprofitable

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : BEAM

The strongest argument for BEAM centers on Revenue Growth, Price/Book. Revenue growth of 279.5% 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 : BEAM

The primary concerns for BEAM are EPS Growth, Return on Equity, Free Cash Flow.

Bear Case : JNJ

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

Key Dynamics to Monitor

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

BEAM carries more volatility with a beta of 2.19 — expect wider price swings.

BEAM is growing revenue faster at 279.5% — 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 35/100), backed by strong 21.8% 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.

Beam Therapeutics Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Beam Therapeutics Inc., a biotechnology company, develops precision genetic drugs for patients with serious illnesses in the United States. The company is headquartered in Cambridge, Massachusetts.

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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