WallStSmart

Castle Biosciences Inc (CSTL)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 27310% more annual revenue ($97.93B vs $357.28M). JNJ leads profitability with a 21.5% profit margin vs -5.4%. JNJ earns a higher WallStSmart Score of 57/100 (C).

CSTL

Hold

37

out of 100

Grade: F

Growth: 6.7Profit: 2.0Value: 6.7Quality: 8.5
Piotroski: 3/9Altman Z: 3.11

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CSTLUndervalued (+59.2%)

Margin of Safety

+59.2%

Fair Value

$79.18

Current Price

$32.03

$47.15 discount

UndervaluedFair: $79.18Overvalued
JNJSignificantly Overvalued (-84.8%)

Margin of Safety

-84.8%

Fair Value

$139.37

Current Price

$259.24

$119.87 premium

UndervaluedFair: $139.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CSTL4 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
20.1%8/10

Revenue surging 20.1% year-over-year

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$614.36B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

CSTL4 concerns · Avg: 2.5/10
Market CapQuality
$928.40M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-2.8%2/10

ROE of -2.8% — below average capital efficiency

EPS GrowthGrowth
-51.6%2/10

Earnings declined 51.6%

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
29.5x4/10

Moderate valuation

PEG RatioValuation
4.232/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : CSTL

The strongest argument for CSTL centers on Debt/Equity, Altman Z-Score, Price/Book. Revenue growth of 20.1% 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 21.5% and operating margin at 29.2%.

Bear Case : CSTL

The primary concerns for CSTL are Market Cap, Piotroski F-Score, Return on Equity.

Bear Case : JNJ

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

Key Dynamics to Monitor

CSTL profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.

CSTL carries more volatility with a beta of 0.97 — expect wider price swings.

CSTL is growing revenue faster at 20.1% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (57/100 vs 37/100), backed by strong 21.5% margins. CSTL offers better value entry with a 59.2% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Castle Biosciences Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Castle Biosciences Inc. is a pioneering diagnostics firm that enhances patient care through advanced gene-expression profiling tests, particularly within the skin cancer sector, exemplified by its flagship product, DecisionDx®-Melanoma. This innovative test offers essential insights for risk stratification, enabling oncologists to make informed treatment decisions in managing melanoma. With a strong focus on precision medicine, coupled with an extensive research and development strategy, Castle Biosciences is poised for growth as it seeks to expand its offerings and meet critical clinical demands. By addressing the complexities inherent in oncology, the company not only aims to improve patient outcomes but also to generate substantial value for its investors.

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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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