GlaxoSmithKline PLC ADR (GSK)vsJohnson & Johnson (JNJ)
GSK
GlaxoSmithKline PLC ADR
$51.84
-1.01%
HEALTHCARE · Cap: $104.38B
JNJ
Johnson & Johnson
$235.37
-0.94%
HEALTHCARE · Cap: $573.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 188% more annual revenue ($94.19B vs $32.67B). JNJ leads profitability with a 28.5% profit margin vs 17.5%. GSK appears more attractively valued with a PEG of 0.50. JNJ earns a higher WallStSmart Score of 71/100 (B).
GSK
Strong Buy70
out of 100
Grade: B
JNJ
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+66.2%
Fair Value
$173.16
Current Price
$51.84
$121.32 discount
Margin of Safety
+53.9%
Fair Value
$515.74
Current Price
$235.37
$280.37 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 43 in profit
Earnings expanding 54.7% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Generating 1.5B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Areas to Watch
Trading at 9.5x book value
Elevated debt levels
Distress zone — elevated risk
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : GSK
The strongest argument for GSK centers on PEG Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 17.5% and operating margin at 18.9%. PEG of 0.50 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 28.5% and operating margin at 24.0%.
Bear Case : GSK
The primary concerns for GSK are Price/Book, Debt/Equity, Altman Z-Score.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Key Dynamics to Monitor
JNJ carries more volatility with a beta of 0.33 — expect wider price swings.
JNJ is growing revenue faster at 9.1% — sustainability is the question.
JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
JNJ scores higher overall (71/100 vs 70/100), backed by strong 28.5% margins. GSK offers better value entry with a 66.2% margin of safety. Both earn "Strong Buy" and "Strong 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.
GlaxoSmithKline PLC ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
GlaxoSmithKline plc is dedicated to the creation, discovery, development, manufacture and marketing of pharmaceuticals, vaccines, over-the-counter drugs and health-related consumer products in the UK, US and internationally. The company is headquartered in Brentford, the United Kingdom.
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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