Gilead Sciences Inc (GILD)vsJohnson & Johnson (JNJ)
GILD
Gilead Sciences Inc
$165.61
+0.08%
HEALTHCARE · Cap: $193.67B
JNJ
Johnson & Johnson
$275.19
+1.53%
HEALTHCARE · Cap: $615.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 226% more annual revenue ($99.33B vs $30.46B). JNJ leads profitability with a 16.2% profit margin vs -10.6%. GILD appears more attractively valued with a PEG of 2.27. JNJ earns a higher WallStSmart Score of 57/100 (C).
GILD
Buy52
out of 100
Grade: C-
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+29.6%
Fair Value
$221.59
Current Price
$165.61
$55.98 discount
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$275.19
$131.07 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
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 17.4x book value
Grey zone — moderate risk
ROE of -27.4% — below average capital efficiency
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
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, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.1%.
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, Piotroski F-Score, PEG Ratio.
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 0.33 — expect wider price swings.
GILD is growing revenue faster at 10.2% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 52/100), backed by strong 16.2% margins. GILD offers better value entry with a 29.6% 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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