WallStSmart

Catalyst Pharmaceuticals Inc (CPRX)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 16540% more annual revenue ($99.33B vs $596.96M). CPRX leads profitability with a 37.1% profit margin vs 16.2%. CPRX trades at a lower P/E of 18.2x. CPRX earns a higher WallStSmart Score of 62/100 (C+).

CPRX

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 9.5Value: 5.3Quality: 8.5
Piotroski: 3/9Altman Z: 6.54

JNJ

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CPRX5 strengths · Avg: 9.8/10
Profit MarginProfitability
37.1%10/10

Keeps 37 of every $100 in revenue as profit

Operating MarginProfitability
49.0%10/10

Strong operational efficiency at 49.0%

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.5410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
21.9%9/10

Every $100 of equity generates 22 in profit

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$657.68B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

Areas to Watch

CPRX1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

JNJ4 concerns · Avg: 2.8/10
Price/BookValuation
8.2x4/10

Trading at 8.2x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.072/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CPRX

The strongest argument for CPRX centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 37.1% and operating margin at 49.0%.

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.7%.

Bear Case : CPRX

The primary concerns for CPRX are Piotroski F-Score.

Bear Case : JNJ

The primary concerns for JNJ are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.

Key Dynamics to Monitor

CPRX carries more volatility with a beta of 0.74 — expect wider price swings.

JNJ is growing revenue faster at 5.9% — sustainability is the question.

JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.

Monitor BIOTECHNOLOGY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CPRX scores higher overall (62/100 vs 54/100), backed by strong 37.1% 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.

Catalyst Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Catalyst Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies for people with rare debilitating, neuromuscular, and chronic neurological diseases in the United States. The company is headquartered in Coral Gables, Florida.

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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