Incyte Corporation (INCY)vsJohnson & Johnson (JNJ)
INCY
Incyte Corporation
$102.38
+1.13%
HEALTHCARE · Cap: $21.68B
JNJ
Johnson & Johnson
$232.77
-2.08%
HEALTHCARE · Cap: $536.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 1697% more annual revenue ($96.36B vs $5.36B). INCY leads profitability with a 26.7% profit margin vs 21.8%. INCY appears more attractively valued with a PEG of 0.36. INCY earns a higher WallStSmart Score of 80/100 (A-).
INCY
Exceptional Buy80
out of 100
Grade: A-
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.4%
Fair Value
$593.92
Current Price
$102.38
$491.54 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
Earnings expanding 83.8% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 26 in profit
Keeps 27 of every $100 in revenue as profit
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
No major concerns identified
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : INCY
The strongest argument for INCY centers on PEG Ratio, EPS Growth, Debt/Equity. Profitability is solid with margins at 26.7% and operating margin at 25.6%. Revenue growth of 20.9% demonstrates continued momentum.
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 : INCY
No major red flags identified for INCY, but monitor valuation.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
INCY profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.
INCY carries more volatility with a beta of 0.79 — expect wider price swings.
INCY is growing revenue faster at 20.9% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
INCY scores higher overall (80/100 vs 59/100), backed by strong 26.7% margins and 20.9% revenue growth. Both earn "Exceptional 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.
Incyte Corporation
HEALTHCARE · BIOTECHNOLOGY · USA
Incyte Corp is an American pharmaceutical company based in Alapocas, Delaware.
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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