WallStSmart

Intuitive Surgical Inc (ISRG)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 758% more annual revenue ($99.33B vs $11.58B). ISRG leads profitability with a 25.5% profit margin vs 16.2%. ISRG appears more attractively valued with a PEG of 2.00. ISRG earns a higher WallStSmart Score of 58/100 (C).

ISRG

Buy

58

out of 100

Grade: C

Growth: 6.0Profit: 9.0Value: 5.3Quality: 7.8
Piotroski: 4/9Altman Z: 5.95

JNJ

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ISRGUndervalued (+78.3%)

Margin of Safety

+78.3%

Fair Value

$1989.68

Current Price

$468.52

$1521.16 discount

UndervaluedFair: $1989.68Overvalued

Intrinsic value data unavailable for JNJ.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ISRG6 strengths · Avg: 9.0/10
Operating MarginProfitability
33.3%10/10

Strong operational efficiency at 33.3%

Altman Z-ScoreHealth
5.9510/10

Safe zone — low bankruptcy risk

Market CapQuality
$152.62B9/10

Large-cap with strong market position

Profit MarginProfitability
25.5%9/10

Keeps 26 of every $100 in revenue as profit

Revenue GrowthGrowth
21.7%8/10

Revenue surging 21.7% year-over-year

Free Cash FlowQuality
$1.11B8/10

Generating 1.1B in free cash flow

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$657.68B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

Areas to Watch

ISRG4 concerns · Avg: 3.0/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

Price/BookValuation
10.2x4/10

Trading at 10.2x book value

P/E RatioValuation
52.2x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-23.6%2/10

Earnings declined 23.6%

JNJ4 concerns · Avg: 2.8/10
Price/BookValuation
8.2x4/10

Trading at 8.2x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.072/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ISRG

The strongest argument for ISRG centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 25.5% and operating margin at 33.3%. Revenue growth of 21.7% demonstrates continued momentum.

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 25.7%.

Bear Case : ISRG

The primary concerns for ISRG are PEG Ratio, Price/Book, P/E Ratio. A P/E of 52.2x leaves little room for execution misses.

Bear Case : JNJ

The primary concerns for JNJ are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.

Key Dynamics to Monitor

ISRG profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.

ISRG carries more volatility with a beta of 1.46 — expect wider price swings.

ISRG is growing revenue faster at 21.7% — sustainability is the question.

JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

ISRG scores higher overall (58/100 vs 54/100), backed by strong 25.5% margins and 21.7% revenue growth. 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.

Intuitive Surgical Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Intuitive Surgical, Inc. is an American corporation that develops, manufactures, and markets robotic products designed to improve clinical outcomes of patients through minimally invasive surgery, most notably with the da Vinci Surgical System.

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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