GlaxoSmithKline PLC ADR (GSK)vsJohnson & Johnson (JNJ)
GSK
GlaxoSmithKline PLC ADR
$49.72
+1.47%
HEALTHCARE · Cap: $104.69B
JNJ
Johnson & Johnson
$232.77
-2.48%
HEALTHCARE · Cap: $567.28B
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%. JNJ appears more attractively valued with a PEG of 3.06. GSK earns a higher WallStSmart Score of 58/100 (C).
GSK
Buy58
out of 100
Grade: C
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-26.5%
Fair Value
$46.24
Current Price
$49.72
$3.48 premium
Margin of Safety
-73.2%
Fair Value
$135.80
Current Price
$232.77
$96.97 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 36.3%
Large-cap with strong market position
Every $100 of equity generates 25 in profit
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
Expensive relative to growth rate
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 Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 17.8% and operating margin at 36.3%.
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, PEG Ratio.
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.
GSK carries more volatility with a beta of 0.29 — 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 (58/100 vs 57/100), backed by strong 17.8% 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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