WallStSmart

Establishment Labs Holdings Inc (ESTA)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 39738% more annual revenue ($97.93B vs $245.82M). JNJ leads profitability with a 21.5% profit margin vs -15.8%. JNJ earns a higher WallStSmart Score of 59/100 (C).

ESTA

Avoid

30

out of 100

Grade: F

Growth: 6.7Profit: 2.0Value: 4.7Quality: 5.0
Piotroski: 4/9Altman Z: -1.05

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ESTAOvervalued (-11.7%)

Margin of Safety

-11.7%

Fair Value

$65.12

Current Price

$70.94

$5.82 premium

UndervaluedFair: $65.12Overvalued
JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$265.58

$125.01 premium

UndervaluedFair: $140.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ESTA1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
31.7%10/10

Revenue surging 31.7% year-over-year

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$640.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

ESTA4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
97.2x2/10

Trading at 97.2x book value

Return on EquityProfitability
-295.9%2/10

ROE of -295.9% — below average capital efficiency

Free Cash FlowQuality
$-20.15M2/10

Negative free cash flow — burning cash

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : ESTA

The strongest argument for ESTA centers on Revenue Growth. Revenue growth of 31.7% 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 : ESTA

The primary concerns for ESTA are EPS Growth, Price/Book, Return on Equity. Debt-to-equity of 12.20 is elevated, increasing financial risk.

Bear Case : JNJ

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

Key Dynamics to Monitor

ESTA profiles as a hypergrowth stock while JNJ is a mature play — different risk/reward profiles.

ESTA carries more volatility with a beta of 1.05 — expect wider price swings.

ESTA is growing revenue faster at 31.7% — 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 30/100), backed by strong 21.5% margins. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Establishment Labs Holdings Inc

HEALTHCARE · MEDICAL DEVICES · USA

Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for cosmetic and reconstructive plastic surgery. The company is headquartered in Alajuela, Costa Rica.

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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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