Edwards Lifesciences Corp (EW)vsJohnson & Johnson (JNJ)
EW
Edwards Lifesciences Corp
$89.72
+0.45%
HEALTHCARE · Cap: $49.56B
JNJ
Johnson & Johnson
$259.24
+0.88%
HEALTHCARE · Cap: $614.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 1404% more annual revenue ($97.93B vs $6.51B). JNJ leads profitability with a 21.5% profit margin vs 15.4%. EW appears more attractively valued with a PEG of 2.09. JNJ earns a higher WallStSmart Score of 57/100 (C).
EW
Buy55
out of 100
Grade: C
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+69.3%
Fair Value
$257.97
Current Price
$89.72
$168.25 discount
Margin of Safety
-84.8%
Fair Value
$139.37
Current Price
$259.24
$119.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Strong operational efficiency at 29.8%
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
Weak financial health signals
Premium valuation, high expectations priced in
Earnings declined 25.4%
Moderate valuation
Expensive relative to growth rate
Earnings declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : EW
The strongest argument for EW centers on Altman Z-Score, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 29.8%. Revenue growth of 13.6% 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 : EW
The primary concerns for EW are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 51.2x 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 carries more volatility with a beta of 0.85 — expect wider price swings.
EW is growing revenue faster at 13.6% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Monitor MEDICAL DEVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
JNJ scores higher overall (57/100 vs 55/100), backed by strong 21.5% margins. EW offers better value entry with a 69.3% margin of safety. 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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