GlaxoSmithKline PLC ADR (GSK)vsJohnson & Johnson (JNJ)
GSK
GlaxoSmithKline PLC ADR
$50.90
-1.38%
HEALTHCARE · Cap: $102.18B
JNJ
Johnson & Johnson
$224.20
+0.60%
HEALTHCARE · Cap: $546.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 194% more annual revenue ($96.36B vs $32.78B). JNJ leads profitability with a 21.8% profit margin vs 17.8%. GSK appears more attractively valued with a PEG of 0.50. GSK earns a higher WallStSmart Score of 66/100 (B-).
GSK
Strong Buy66
out of 100
Grade: B-
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-3.1%
Fair Value
$56.73
Current Price
$50.90
$5.83 premium
Margin of Safety
-39.8%
Fair Value
$160.43
Current Price
$224.20
$63.77 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 41 in profit
Strong operational efficiency at 36.3%
Large-cap with strong market position
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Areas to Watch
1.5% revenue growth
Elevated debt levels
Distress zone — elevated risk
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : GSK
The strongest argument for GSK centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 17.8% and operating margin at 36.3%. 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 21.8% and operating margin at 27.4%.
Bear Case : GSK
The primary concerns for GSK are Revenue Growth, Debt/Equity, Altman Z-Score.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
GSK profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
JNJ carries more volatility with a beta of 0.33 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
GSK scores higher overall (66/100 vs 59/100), backed by strong 17.8% margins. 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.
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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