WallStSmart

Celestica Inc. (CLS)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 660% more annual revenue ($94.19B vs $12.39B). JNJ leads profitability with a 28.5% profit margin vs 6.7%. CLS appears more attractively valued with a PEG of 1.00. JNJ earns a higher WallStSmart Score of 71/100 (B).

CLS

Strong Buy

68

out of 100

Grade: B-

Growth: 10.0Profit: 7.0Value: 8.7Quality: 5.0
Piotroski: 5/9

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

CLSUndervalued (+11.6%)

Margin of Safety

+11.6%

Fair Value

$334.62

Current Price

$302.22

$32.40 discount

UndervaluedFair: $334.62Overvalued
JNJUndervalued (+54.5%)

Margin of Safety

+54.5%

Fair Value

$516.67

Current Price

$239.93

$276.74 discount

UndervaluedFair: $516.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CLS4 strengths · Avg: 9.5/10
Return on EquityProfitability
40.5%10/10

Every $100 of equity generates 41 in profit

Revenue GrowthGrowth
43.6%10/10

Revenue surging 43.6% year-over-year

EPS GrowthGrowth
77.7%10/10

Earnings expanding 77.7% YoY

PEG RatioValuation
1.008/10

Growing faster than its price suggests

JNJ6 strengths · Avg: 8.8/10
Market CapQuality
$567.22B10/10

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 28 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

CLS3 concerns · Avg: 3.0/10
Price/BookValuation
15.7x4/10

Trading at 15.7x book value

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

P/E RatioValuation
42.2x2/10

Premium valuation, high expectations priced in

JNJ1 concerns · Avg: 4.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CLS

The strongest argument for CLS centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 43.6% demonstrates continued momentum. PEG of 1.00 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 28.5% and operating margin at 24.0%.

Bear Case : CLS

The primary concerns for CLS are Price/Book, Profit Margin, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.

Bear Case : JNJ

The primary concerns for JNJ are PEG Ratio.

Key Dynamics to Monitor

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

CLS carries more volatility with a beta of 1.38 — expect wider price swings.

CLS is growing revenue faster at 43.6% — 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 68/100), backed by strong 28.5% margins. Both earn "Strong Buy" and "Strong 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.

Celestica Inc.

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Celestica Inc. provides hardware platforms and supply chain solutions in North America, Europe, and Asia. The company is headquartered in Toronto, Canada.

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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