WallStSmart

Incyte Corporation (INCY)vsJohnson & Johnson (JNJ)

VS

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 0.35. INCY earns a higher WallStSmart Score of 83/100 (A-).

INCY

Exceptional Buy

83

out of 100

Grade: A-

Growth: 8.7Profit: 9.5Value: 9.3Quality: 7.8
Piotroski: 5/9Altman Z: 3.07

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INCYUndervalued (+84.2%)

Margin of Safety

+84.2%

Fair Value

$624.90

Current Price

$95.27

$529.63 discount

UndervaluedFair: $624.90Overvalued
JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$229.85

$69.72 premium

UndervaluedFair: $160.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INCY6 strengths · Avg: 9.5/10
PEG RatioValuation
0.3510/10

Growing faster than its price suggests

Return on EquityProfitability
30.8%10/10

Every $100 of equity generates 31 in profit

EPS GrowthGrowth
83.8%10/10

Earnings expanding 83.8% YoY

Altman Z-ScoreHealth
3.0710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%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

INCY0 concerns · Avg: 0/10

No major concerns identified

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : INCY

The strongest argument for INCY centers on PEG Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 26.7% and operating margin at 25.5%. 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 0.86 — 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 (83/100 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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