WallStSmart

Jazz Pharmaceuticals PLC (JAZZ)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 2059% more annual revenue ($99.33B vs $4.60B). JAZZ leads profitability with a 20.4% profit margin vs 16.2%. JAZZ appears more attractively valued with a PEG of 0.96. JAZZ earns a higher WallStSmart Score of 72/100 (B).

JAZZ

Strong Buy

72

out of 100

Grade: B

Growth: 6.0Profit: 8.0Value: 8.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.87

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

JAZZUndervalued (+51.5%)

Margin of Safety

+51.5%

Fair Value

$342.46

Current Price

$205.06

$137.40 discount

UndervaluedFair: $342.46Overvalued
JNJSignificantly Overvalued (-83.0%)

Margin of Safety

-83.0%

Fair Value

$144.12

Current Price

$275.19

$131.07 premium

UndervaluedFair: $144.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JAZZ6 strengths · Avg: 8.2/10
Profit MarginProfitability
20.4%9/10

Keeps 20 of every $100 in revenue as profit

PEG RatioValuation
0.968/10

Growing faster than its price suggests

P/E RatioValuation
14.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

Revenue GrowthGrowth
15.5%8/10

15.5% revenue growth

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

JAZZ2 concerns · Avg: 3.0/10
EPS GrowthGrowth
3.2%4/10

3.2% earnings growth

Altman Z-ScoreHealth
0.872/10

Distress zone — elevated risk

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 : JAZZ

The strongest argument for JAZZ centers on Profit Margin, PEG Ratio, P/E Ratio. Profitability is solid with margins at 20.4% and operating margin at 26.9%. Revenue growth of 15.5% 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 25.1%.

Bear Case : JAZZ

The primary concerns for JAZZ are EPS Growth, Altman Z-Score.

Bear Case : JNJ

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

Key Dynamics to Monitor

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

JAZZ carries more volatility with a beta of 0.37 — expect wider price swings.

JAZZ is growing revenue faster at 15.5% — sustainability is the question.

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

Bottom Line

JAZZ scores higher overall (72/100 vs 57/100), backed by strong 20.4% margins and 15.5% 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.

Jazz Pharmaceuticals PLC

HEALTHCARE · BIOTECHNOLOGY · USA

Jazz Pharmaceuticals plc, a biopharmaceutical company, identifies, develops, and markets pharmaceutical products for various unmet medical needs in the United States, Europe, and internationally. The company is headquartered in Dublin, Ireland.

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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