DexCom Inc (DXCM)vsJohnson & Johnson (JNJ)
DXCM
DexCom Inc
$84.46
-4.54%
HEALTHCARE · Cap: $29.67B
JNJ
Johnson & Johnson
$276.25
+1.44%
HEALTHCARE · Cap: $657.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 1899% more annual revenue ($99.33B vs $4.97B). DXCM leads profitability with a 20.1% profit margin vs 16.2%. DXCM appears more attractively valued with a PEG of 1.30. DXCM earns a higher WallStSmart Score of 74/100 (B).
DXCM
Strong Buy74
out of 100
Grade: B
JNJ
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+89.9%
Fair Value
$676.00
Current Price
$84.46
$591.54 discount
Margin of Safety
-89.3%
Fair Value
$144.28
Current Price
$276.25
$131.97 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 38 in profit
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 24.3%
Earnings expanding 43.6% YoY
Mega-cap, among the largest globally
Strong operational efficiency at 25.7%
Generating 6.4B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Trading at 12.2x book value
Trading at 8.2x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : DXCM
The strongest argument for DXCM centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 20.1% and operating margin at 24.3%. Revenue growth of 13.1% demonstrates continued momentum.
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 : DXCM
The primary concerns for DXCM are P/E Ratio, Price/Book.
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
DXCM carries more volatility with a beta of 1.48 — expect wider price swings.
DXCM is growing revenue faster at 13.1% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Monitor MEDICAL DEVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DXCM scores higher overall (74/100 vs 54/100), backed by strong 20.1% margins and 13.1% revenue growth. 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.
DexCom Inc
HEALTHCARE · MEDICAL DEVICES · USA
DexCom, Inc. is a company that develops, manufactures, and distributes continuous glucose monitoring (CGM) systems for diabetes management. It operates internationally with headquarters in San Diego, California, and has a manufacturing facility in Mesa, Arizona.
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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