Elanco Animal Health (ELAN)vsJohnson & Johnson (JNJ)
ELAN
Elanco Animal Health
$23.63
-4.37%
HEALTHCARE · Cap: $12.07B
JNJ
Johnson & Johnson
$232.77
+1.07%
HEALTHCARE · Cap: $536.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 1869% more annual revenue ($96.36B vs $4.89B). JNJ leads profitability with a 21.8% profit margin vs -5.0%. JNJ appears more attractively valued with a PEG of 2.91. JNJ earns a higher WallStSmart Score of 59/100 (C).
ELAN
Hold44
out of 100
Grade: D
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.0%
Fair Value
$19.48
Current Price
$23.63
$4.15 premium
Margin of Safety
-71.4%
Fair Value
$135.80
Current Price
$232.77
$96.97 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of -3.7% — below average capital efficiency
Earnings declined 15.4%
Negative free cash flow — burning cash
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : ELAN
The strongest argument for ELAN centers on Price/Book. Revenue growth of 14.9% 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 : ELAN
The primary concerns for ELAN are PEG Ratio, Return on Equity, EPS Growth.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ELAN profiles as a turnaround stock while JNJ is a mature play — different risk/reward profiles.
ELAN carries more volatility with a beta of 1.70 — expect wider price swings.
ELAN is growing revenue faster at 14.9% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 44/100), backed by strong 21.8% margins. 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.
Elanco Animal Health
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures and markets products for pets and farm animals. The company is headquartered in Greenfield, Indiana.
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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