WallStSmart

InMode Ltd (INMD)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 26416% more annual revenue ($99.33B vs $374.63M). INMD leads profitability with a 20.7% profit margin vs 16.2%. JNJ appears more attractively valued with a PEG of 2.82. JNJ earns a higher WallStSmart Score of 57/100 (C).

INMD

Buy

52

out of 100

Grade: C-

Growth: 2.7Profit: 6.5Value: 7.3Quality: 8.5
Piotroski: 2/9Altman Z: 8.64

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

INMDUndervalued (+58.8%)

Margin of Safety

+58.8%

Fair Value

$34.60

Current Price

$13.37

$21.23 discount

UndervaluedFair: $34.60Overvalued
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

INMD5 strengths · Avg: 9.8/10
P/E RatioValuation
11.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
8.6410/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
20.7%9/10

Keeps 21 of every $100 in revenue as profit

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

INMD4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Market CapQuality
$808.50M3/10

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

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 : INMD

The strongest argument for INMD centers on P/E Ratio, Price/Book, Debt/Equity. Profitability is solid with margins at 20.7% and operating margin at 12.8%.

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 : INMD

The primary concerns for INMD are Revenue Growth, Market Cap, Piotroski F-Score.

Bear Case : JNJ

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

Key Dynamics to Monitor

INMD profiles as a value stock while JNJ is a mature play — different risk/reward profiles.

INMD carries more volatility with a beta of 2.03 — 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 52/100), backed by strong 16.2% margins. INMD offers better value entry with a 58.8% 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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