WallStSmart

Bristol-Myers Squibb Company (BMY)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 95% more annual revenue ($94.19B vs $48.19B). JNJ leads profitability with a 28.5% profit margin vs 14.6%. JNJ appears more attractively valued with a PEG of 1.70. JNJ earns a higher WallStSmart Score of 71/100 (B).

BMY

Buy

64

out of 100

Grade: C+

Growth: 10.0Profit: 8.5Value: 10.0Quality: 4.5
Piotroski: 6/9Altman Z: 1.42

JNJ

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 9.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BMYUndervalued (+63.0%)

Margin of Safety

+63.0%

Fair Value

$161.93

Current Price

$57.48

$104.45 discount

UndervaluedFair: $161.93Overvalued
JNJUndervalued (+53.9%)

Margin of Safety

+53.9%

Fair Value

$515.74

Current Price

$235.37

$280.37 discount

UndervaluedFair: $515.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BMY6 strengths · Avg: 9.2/10
Return on EquityProfitability
40.4%10/10

Every $100 of equity generates 40 in profit

Revenue GrowthGrowth
130.0%10/10

Revenue surging 130.0% year-over-year

EPS GrowthGrowth
1392.0%10/10

Earnings expanding 1392.0% YoY

Market CapQuality
$117.06B9/10

Large-cap with strong market position

P/E RatioValuation
16.6x8/10

Attractively priced relative to earnings

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

JNJ6 strengths · Avg: 8.8/10
Market CapQuality
$573.82B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.0%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
28.5%9/10

Keeps 29 of every $100 in revenue as profit

Operating MarginProfitability
24.0%8/10

Strong operational efficiency at 24.0%

EPS GrowthGrowth
48.6%8/10

Earnings expanding 48.6% YoY

Free Cash FlowQuality
$5.47B8/10

Generating 5.5B in free cash flow

Areas to Watch

BMY3 concerns · Avg: 2.3/10
PEG RatioValuation
2.264/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.422/10

Distress zone — elevated risk

Debt/EquityHealth
2.551/10

Elevated debt levels

JNJ1 concerns · Avg: 4.0/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : BMY

The strongest argument for BMY centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 130.0% 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 28.5% and operating margin at 24.0%.

Bear Case : BMY

The primary concerns for BMY are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.55 is elevated, increasing financial risk.

Bear Case : JNJ

The primary concerns for JNJ are PEG Ratio.

Key Dynamics to Monitor

BMY profiles as a growth 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.

BMY is growing revenue faster at 130.0% — 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. BMY offers better value entry with a 63.0% 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.

Bristol-Myers Squibb Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Bristol Myers Squibb (BMS) is an American multinational pharmaceutical company, headquartered in New York City. Bristol Myers Squibb manufactures prescription pharmaceuticals and biologics in several therapeutic areas, including cancer, AIDS, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis and psychiatric disorders.

Visit Website →

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.

Visit Website →

Want to dig deeper into these stocks?