WallStSmart

Biomarin Pharmaceutical Inc (BMRN)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 2872% more annual revenue ($96.36B vs $3.24B). JNJ leads profitability with a 21.8% profit margin vs 8.3%. BMRN appears more attractively valued with a PEG of 0.69. JNJ earns a higher WallStSmart Score of 59/100 (C).

BMRN

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 7.3Quality: 8.5
Piotroski: 2/9Altman Z: 3.60

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

BMRNUndervalued (+65.7%)

Margin of Safety

+65.7%

Fair Value

$175.57

Current Price

$56.77

$118.80 discount

UndervaluedFair: $175.57Overvalued
JNJSignificantly Overvalued (-71.4%)

Margin of Safety

-71.4%

Fair Value

$135.80

Current Price

$232.77

$96.97 premium

UndervaluedFair: $135.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BMRN4 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.239/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.698/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$536.54B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
25.9%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

BMRN4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Return on EquityProfitability
4.3%3/10

ROE of 4.3% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
40.3x2/10

Premium valuation, high expectations priced in

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.912/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : BMRN

The strongest argument for BMRN centers on Altman Z-Score, Debt/Equity, PEG Ratio. PEG of 0.69 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 21.8% and operating margin at 27.4%.

Bear Case : BMRN

The primary concerns for BMRN are Revenue Growth, Return on Equity, Piotroski F-Score. A P/E of 40.3x leaves little room for execution misses.

Bear Case : JNJ

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

Key Dynamics to Monitor

BMRN profiles as a value stock while JNJ is a mature play — different risk/reward profiles.

JNJ carries more volatility with a beta of 0.26 — expect wider price swings.

JNJ is growing revenue faster at 9.9% — 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 55/100), backed by strong 21.8% margins. BMRN offers better value entry with a 65.7% margin of safety. 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.

Biomarin Pharmaceutical Inc

HEALTHCARE · BIOTECHNOLOGY · USA

BioMarin Pharmaceutical Inc. develops and markets therapies for people with rare diseases and serious and life-threatening medical conditions. The company is headquartered in San Rafael, 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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