WallStSmart

DexCom Inc (DXCM)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1900% more annual revenue ($96.36B vs $4.82B). JNJ leads profitability with a 21.8% profit margin vs 19.3%. DXCM appears more attractively valued with a PEG of 1.12. DXCM earns a higher WallStSmart Score of 72/100 (B).

DXCM

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 8.5Value: 7.3Quality: 6.5
Piotroski: 5/9Altman Z: 2.56

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DXCMUndervalued (+90.0%)

Margin of Safety

+90.0%

Fair Value

$679.65

Current Price

$60.61

$619.04 discount

UndervaluedFair: $679.65Overvalued
JNJSignificantly Overvalued (-38.5%)

Margin of Safety

-38.5%

Fair Value

$160.72

Current Price

$221.32

$60.60 premium

UndervaluedFair: $160.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DXCM4 strengths · Avg: 9.0/10
Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 in profit

EPS GrowthGrowth
92.2%10/10

Earnings expanding 92.2% YoY

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

Revenue GrowthGrowth
15.0%8/10

15.0% revenue growth

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$535.63B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

Areas to Watch

DXCM1 concerns · Avg: 4.0/10
P/E RatioValuation
26.1x4/10

Moderate valuation

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.922/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : DXCM

The strongest argument for DXCM centers on Return on Equity, EPS Growth, Operating Margin. Profitability is solid with margins at 19.3% and operating margin at 21.4%. Revenue growth of 15.0% 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 21.8% and operating margin at 27.4%.

Bear Case : DXCM

The primary concerns for DXCM are P/E Ratio.

Bear Case : JNJ

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

Key Dynamics to Monitor

DXCM carries more volatility with a beta of 1.40 — expect wider price swings.

DXCM is growing revenue faster at 15.0% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Monitor MEDICAL DEVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DXCM scores higher overall (72/100 vs 59/100), backed by strong 19.3% margins and 15.0% 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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