Gilead Sciences Inc (GILD)vsJohnson & Johnson (JNJ)
GILD
Gilead Sciences Inc
$143.72
-0.75%
HEALTHCARE · Cap: $179.56B
JNJ
Johnson & Johnson
$265.58
-0.29%
HEALTHCARE · Cap: $640.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 222% more annual revenue ($97.93B vs $30.46B). JNJ leads profitability with a 21.5% profit margin vs -10.6%. GILD appears more attractively valued with a PEG of 1.95. JNJ earns a higher WallStSmart Score of 59/100 (C).
GILD
Buy54
out of 100
Grade: C-
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+35.7%
Fair Value
$223.50
Current Price
$143.72
$79.78 discount
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
Strong operational efficiency at 33.7%
Earnings expanding 54.8% YoY
Large-cap with strong market position
Generating 3.5B in free cash flow
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
Trading at 15.1x book value
Grey zone — moderate risk
ROE of -27.4% — below average capital efficiency
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : GILD
The strongest argument for GILD centers on Operating Margin, EPS Growth, Market Cap. 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 : GILD
The primary concerns for GILD are PEG Ratio, Price/Book, Altman Z-Score. Debt-to-equity of 2.22 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
GILD profiles as a turnaround stock while JNJ is a mature play — different risk/reward profiles.
GILD carries more volatility with a beta of 0.35 — expect wider price swings.
GILD is growing revenue faster at 10.2% — sustainability is the question.
GILD generates stronger free cash flow (3.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 54/100), backed by strong 21.5% margins. GILD offers better value entry with a 35.7% 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.
Gilead Sciences Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.
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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