WallStSmart

InMode Ltd (INMD)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 25909% more annual revenue ($96.36B vs $370.50M). INMD leads profitability with a 25.3% profit margin vs 21.8%. INMD appears more attractively valued with a PEG of 2.90. JNJ earns a higher WallStSmart Score of 59/100 (C).

INMD

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 8.0Value: 7.3Quality: 8.5
Piotroski: 2/9Altman Z: 8.64

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

INMDUndervalued (+65.7%)

Margin of Safety

+65.7%

Fair Value

$41.53

Current Price

$14.47

$27.06 discount

UndervaluedFair: $41.53Overvalued
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

INMD6 strengths · Avg: 9.5/10
P/E RatioValuation
10.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
8.6410/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
25.3%9/10

Keeps 25 of every $100 in revenue as profit

Operating MarginProfitability
25.0%8/10

Strong operational efficiency at 25.0%

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

INMD4 concerns · Avg: 2.5/10
Market CapQuality
$906.66M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.902/10

Expensive relative to growth rate

EPS GrowthGrowth
-63.5%2/10

Earnings declined 63.5%

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 : INMD

The strongest argument for INMD centers on P/E Ratio, Price/Book, Debt/Equity. Profitability is solid with margins at 25.3% and operating margin at 25.0%.

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 : INMD

The primary concerns for INMD are Market Cap, Piotroski F-Score, PEG Ratio.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

INMD carries more volatility with a beta of 2.12 — expect wider price swings.

JNJ is growing revenue faster at 9.9% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Monitor MEDICAL DEVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

JNJ scores higher overall (59/100 vs 58/100), backed by strong 21.8% margins. INMD offers better value entry with a 65.7% 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.

InMode Ltd

HEALTHCARE · MEDICAL DEVICES · USA

InMode Ltd. designs, develops, manufactures and markets minimally invasive aesthetic medical products based on its proprietary RF-assisted lipolysis and deep subdermal fractional RF technologies. The company is headquartered in Yokneam, Israel.

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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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