Edwards Lifesciences Corp (EW)vsJohnson & Johnson (JNJ)
EW
Edwards Lifesciences Corp
$85.88
-1.70%
HEALTHCARE · Cap: $49.01B
JNJ
Johnson & Johnson
$231.29
+0.82%
HEALTHCARE · Cap: $567.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 1429% more annual revenue ($96.36B vs $6.30B). JNJ leads profitability with a 21.8% profit margin vs 17.4%. EW appears more attractively valued with a PEG of 2.05. EW earns a higher WallStSmart Score of 61/100 (C+).
EW
Buy61
out of 100
Grade: C+
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+68.6%
Fair Value
$252.36
Current Price
$85.88
$166.48 discount
Margin of Safety
-67.8%
Fair Value
$136.12
Current Price
$231.29
$95.17 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 31.2%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
16.7% revenue growth
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
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : EW
The strongest argument for EW centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 17.4% and operating margin at 31.2%. Revenue growth of 16.7% 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 21.8% and operating margin at 27.4%.
Bear Case : EW
The primary concerns for EW are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 46.0x leaves little room for execution misses.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
EW profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.
EW carries more volatility with a beta of 0.87 — expect wider price swings.
EW is growing revenue faster at 16.7% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
EW scores higher overall (61/100 vs 57/100), backed by strong 17.4% margins and 16.7% revenue growth. 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.
Edwards Lifesciences Corp
HEALTHCARE · MEDICAL DEVICES · USA
Edwards Lifesciences is an American medical technology company headquartered in Irvine, California, specializing in artificial heart valves and hemodynamic monitoring.
Visit Website →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 MEDICAL DEVICES Stocks
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