WallStSmart

ICON PLC (ICLR)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1098% more annual revenue ($99.33B vs $8.29B). JNJ leads profitability with a 16.2% profit margin vs 0.3%. ICLR appears more attractively valued with a PEG of 0.50. JNJ earns a higher WallStSmart Score of 57/100 (C).

ICLR

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 4.5Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.58

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ICLRUndervalued (+60.6%)

Margin of Safety

+60.6%

Fair Value

$337.64

Current Price

$214.16

$123.48 discount

UndervaluedFair: $337.64Overvalued
JNJSignificantly Overvalued (-83.0%)

Margin of Safety

-83.0%

Fair Value

$144.12

Current Price

$271.17

$127.05 premium

UndervaluedFair: $144.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ICLR2 strengths · Avg: 9.0/10
PEG RatioValuation
0.5010/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$615.87B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.1%8/10

Strong operational efficiency at 25.1%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

Areas to Watch

ICLR4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
1.2%4/10

1.2% revenue growth

Altman Z-ScoreHealth
1.584/10

Distress zone — elevated risk

Return on EquityProfitability
0.7%3/10

ROE of 0.7% — below average capital efficiency

Profit MarginProfitability
0.3%3/10

0.3% margin — thin

JNJ4 concerns · Avg: 2.8/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-96.0%2/10

Earnings declined 96.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : ICLR

The strongest argument for ICLR centers on PEG Ratio, Price/Book. 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, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.1%.

Bear Case : ICLR

The primary concerns for ICLR are Revenue Growth, Altman Z-Score, Return on Equity. A P/E of 179.1x leaves little room for execution misses. Thin 0.3% margins leave little buffer for downturns.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.

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 1.24 — 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 (57/100 vs 51/100), backed by strong 16.2% margins. ICLR offers better value entry with a 60.6% 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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