Emerson Electric Company (EMR)vsJohnson & Johnson (JNJ)
EMR
Emerson Electric Company
$130.86
+0.55%
INDUSTRIALS · Cap: $73.18B
JNJ
Johnson & Johnson
$239.93
+1.98%
HEALTHCARE · Cap: $567.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 418% more annual revenue ($94.19B vs $18.19B). JNJ leads profitability with a 28.5% profit margin vs 12.7%. EMR appears more attractively valued with a PEG of 1.64. JNJ earns a higher WallStSmart Score of 71/100 (B).
EMR
Buy51
out of 100
Grade: C-
JNJ
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-159.6%
Fair Value
$59.58
Current Price
$130.86
$71.28 premium
Margin of Safety
+54.5%
Fair Value
$516.67
Current Price
$239.93
$276.74 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Strong operational efficiency at 24.6%
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 28 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
4.1% revenue growth
4.9% earnings growth
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : EMR
The strongest argument for EMR centers on Market Cap, Operating Margin.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 28.5% and operating margin at 24.0%.
Bear Case : EMR
The primary concerns for EMR are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Key Dynamics to Monitor
EMR profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
EMR carries more volatility with a beta of 1.24 — expect wider price swings.
JNJ is growing revenue faster at 9.1% — sustainability is the question.
JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (71/100 vs 51/100), backed by strong 28.5% margins. 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.
Emerson Electric Company
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri. The Fortune 500 company manufactures products and provides engineering services for a wide range of industrial, commercial, and consumer markets.
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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