Elanco Animal Health (ELAN)vsJohnson & Johnson (JNJ)
ELAN
Elanco Animal Health
$23.17
+1.36%
HEALTHCARE · Cap: $11.98B
JNJ
Johnson & Johnson
$265.58
-0.29%
HEALTHCARE · Cap: $640.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 1851% more annual revenue ($97.93B vs $5.02B). JNJ leads profitability with a 21.5% profit margin vs -4.0%. JNJ appears more attractively valued with a PEG of 2.79. JNJ earns a higher WallStSmart Score of 59/100 (C).
ELAN
Buy52
out of 100
Grade: C-
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.5%
Fair Value
$19.85
Current Price
$23.17
$3.32 premium
Margin of Safety
-88.9%
Fair Value
$140.57
Current Price
$265.58
$125.01 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 440.5% YoY
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of -3.0% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : ELAN
The strongest argument for ELAN centers on EPS Growth, Price/Book. Revenue growth of 10.2% 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 : ELAN
The primary concerns for ELAN are PEG Ratio, Return on Equity, Altman Z-Score.
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 1.68 — expect wider price swings.
ELAN is growing revenue faster at 10.2% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 52/100), backed by strong 21.5% 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.
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.
Visit Website →Compare with Other DRUG MANUFACTURERS - SPECIALTY & GENERIC Stocks
Want to dig deeper into these stocks?