WallStSmart

Heron Therapeuti (HRTX)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 63838% more annual revenue ($96.36B vs $150.71M). JNJ leads profitability with a 21.8% profit margin vs -20.5%. JNJ earns a higher WallStSmart Score of 57/100 (C).

HRTX

Avoid

27

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 5.0Quality: 4.5
Piotroski: 4/9Altman Z: -9.57

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 4.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HRTX0 strengths · Avg: 0/10

No standout strengths identified

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$613.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
25.9%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

Areas to Watch

HRTX4 concerns · Avg: 3.3/10
Price/BookValuation
11.0x4/10

Trading at 11.0x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$80.78M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-338.6%2/10

ROE of -338.6% — below average capital efficiency

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
29.5x4/10

Moderate valuation

PEG RatioValuation
4.892/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : HRTX

HRTX has a balanced fundamental profile.

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 : HRTX

The primary concerns for HRTX are Price/Book, EPS Growth, Market Cap. Debt-to-equity of 15.50 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

HRTX profiles as a turnaround stock while JNJ is a mature play — different risk/reward profiles.

HRTX carries more volatility with a beta of 1.57 — 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

JNJ scores higher overall (57/100 vs 27/100), backed by strong 21.8% margins. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Heron Therapeuti

HEALTHCARE · BIOTECHNOLOGY · USA

Heron Therapeutics, Inc., a biotechnology company, is dedicated to developing treatments to address unmet medical needs. The company is headquartered in San Diego, California.

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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