ICON PLC (ICLR)vsJohnson & Johnson (JNJ)
ICLR
ICON PLC
$149.45
-2.19%
HEALTHCARE · Cap: $11.19B
JNJ
Johnson & Johnson
$232.77
+1.07%
HEALTHCARE · Cap: $536.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 1068% more annual revenue ($96.36B vs $8.25B). JNJ leads profitability with a 21.8% profit margin vs 2.8%. ICLR appears more attractively valued with a PEG of 0.48. JNJ earns a higher WallStSmart Score of 59/100 (C).
ICLR
Buy57
out of 100
Grade: C
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.9%
Fair Value
$349.56
Current Price
$149.45
$200.11 discount
Margin of Safety
-71.4%
Fair Value
$135.80
Current Price
$232.77
$96.97 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
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
Distress zone — elevated risk
ROE of 6.4% — below average capital efficiency
2.8% margin — thin
Premium valuation, high expectations priced in
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : ICLR
The strongest argument for ICLR centers on PEG Ratio, Price/Book. Revenue growth of 12.4% demonstrates continued momentum. PEG of 0.48 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 : ICLR
The primary concerns for ICLR are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 50.6x leaves little room for execution misses. Thin 2.8% margins leave little buffer for downturns.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ICLR profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
ICLR carries more volatility with a beta of 1.27 — expect wider price swings.
ICLR is growing revenue faster at 12.4% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 57/100), backed by strong 21.8% margins. ICLR offers better value entry with a 61.9% margin of safety. 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.
ICON PLC
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
ICON Public Limited Company, a clinical research organization, provides outsourced marketing and development services in Ireland, the rest of Europe, the United States and internationally. The company is headquartered in Dublin, Ireland.
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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