WallStSmart

Incyte Corporation (INCY)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1727% more annual revenue ($97.93B vs $5.36B). INCY leads profitability with a 26.7% profit margin vs 21.5%. JNJ appears more attractively valued with a PEG of 4.14. INCY earns a higher WallStSmart Score of 72/100 (B).

INCY

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 6.7Quality: 9.0
Piotroski: 5/9Altman Z: 3.89

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INCYUndervalued (+83.1%)

Margin of Safety

+83.1%

Fair Value

$583.69

Current Price

$127.10

$456.59 discount

UndervaluedFair: $583.69Overvalued

Intrinsic value data unavailable for JNJ.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INCY6 strengths · Avg: 9.3/10
EPS GrowthGrowth
83.8%10/10

Earnings expanding 83.8% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.8910/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
16.6x8/10

Attractively priced relative to earnings

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$615.36B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
28.6%8/10

Strong operational efficiency at 28.6%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

INCY1 concerns · Avg: 2.0/10
PEG RatioValuation
12.042/10

Expensive relative to growth rate

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
29.1x4/10

Moderate valuation

PEG RatioValuation
4.142/10

Expensive relative to growth rate

EPS GrowthGrowth
-1.0%2/10

Earnings declined 1.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : INCY

The strongest argument for INCY centers on EPS Growth, Debt/Equity, Altman Z-Score. 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 21.5% and operating margin at 28.6%.

Bear Case : INCY

The primary concerns for INCY are PEG Ratio.

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 0.76 — expect wider price swings.

INCY is growing revenue faster at 20.9% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

INCY scores higher overall (72/100 vs 57/100), backed by strong 26.7% margins and 20.9% revenue growth. Both earn "Strong 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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