GlaxoSmithKline PLC ADR (GSK)vsJohnson & Johnson (JNJ)
GSK
GlaxoSmithKline PLC ADR
$49.13
-0.77%
HEALTHCARE · Cap: $99.19B
JNJ
Johnson & Johnson
$270.55
-0.97%
HEALTHCARE · Cap: $657.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 196% more annual revenue ($99.33B vs $33.54B). JNJ leads profitability with a 16.2% profit margin vs 13.0%. JNJ appears more attractively valued with a PEG of 3.07. JNJ earns a higher WallStSmart Score of 54/100 (C-).
GSK
Buy52
out of 100
Grade: C-
JNJ
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-24.2%
Fair Value
$47.08
Current Price
$49.13
$2.05 premium
Margin of Safety
-89.3%
Fair Value
$144.28
Current Price
$270.55
$126.27 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 32.1%
Large-cap with strong market position
Every $100 of equity generates 27 in profit
Attractively priced relative to earnings
Generating 2.2B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 25.7%
Generating 6.4B in free cash flow
Areas to Watch
4.0% revenue growth
Elevated debt levels
Expensive relative to growth rate
Earnings declined 22.8%
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 95.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : GSK
The strongest argument for GSK centers on Operating Margin, Market Cap, Return on Equity.
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 25.7%.
Bear Case : GSK
The primary concerns for GSK are Revenue Growth, Debt/Equity, PEG Ratio.
Bear Case : JNJ
The primary concerns for JNJ are Piotroski F-Score, PEG Ratio, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.
Key Dynamics to Monitor
GSK profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
GSK carries more volatility with a beta of 0.28 — expect wider price swings.
JNJ is growing revenue faster at 5.9% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (54/100 vs 52/100), backed by strong 16.2% margins. 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.
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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