WallStSmart

Grifols SA ADR (GRFS)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1220% more annual revenue ($97.93B vs $7.42B). JNJ leads profitability with a 21.5% profit margin vs 6.1%. GRFS appears more attractively valued with a PEG of 0.23. GRFS earns a higher WallStSmart Score of 69/100 (B-).

GRFS

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 5.5Value: 10.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.15

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

GRFSUndervalued (+70.4%)

Margin of Safety

+70.4%

Fair Value

$31.15

Current Price

$7.55

$23.60 discount

UndervaluedFair: $31.15Overvalued
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

GRFS4 strengths · Avg: 9.0/10
PEG RatioValuation
0.2310/10

Growing faster than its price suggests

P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
32.9%8/10

Earnings expanding 32.9% YoY

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

GRFS4 concerns · Avg: 2.8/10
Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
6.1%3/10

6.1% margin — thin

Debt/EquityHealth
1.543/10

Elevated debt levels

Revenue GrowthGrowth
-0.9%2/10

Revenue declined 0.9%

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 : GRFS

The strongest argument for GRFS centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.23 suggests the stock is reasonably priced for its growth.

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 : GRFS

The primary concerns for GRFS are Return on Equity, Profit Margin, Debt/Equity. Debt-to-equity of 1.54 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

GRFS profiles as a value stock while JNJ is a mature play — different risk/reward profiles.

GRFS carries more volatility with a beta of 1.19 — expect wider price swings.

JNJ is growing revenue faster at 6.6% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

GRFS scores higher overall (69/100 vs 59/100). Both earn "Strong 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.

Grifols SA ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Grifols, SA is dedicated to obtaining, manufacturing, preparing and selling therapeutic products, mainly blood derivatives. The company is headquartered in Barcelona, Spain.

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 →

Want to dig deeper into these stocks?