WallStSmart

Johnson & Johnson (JNJ)vsKrystal Biotech Inc (KRYS)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 22992% more annual revenue ($96.36B vs $417.30M). KRYS leads profitability with a 53.9% profit margin vs 21.8%. JNJ trades at a lower P/E of 25.8x. KRYS earns a higher WallStSmart Score of 65/100 (C+).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

KRYS

Buy

65

out of 100

Grade: C+

Growth: 8.3Profit: 9.0Value: 4.7Quality: 9.0
Piotroski: 4/9Altman Z: 7.95
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-38.5%)

Margin of Safety

-38.5%

Fair Value

$160.72

Current Price

$221.32

$60.60 premium

UndervaluedFair: $160.72Overvalued

Intrinsic value data unavailable for KRYS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$535.63B10/10

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

KRYS6 strengths · Avg: 10.0/10
Profit MarginProfitability
53.9%10/10

Keeps 54 of every $100 in revenue as profit

Operating MarginProfitability
46.1%10/10

Strong operational efficiency at 46.1%

Revenue GrowthGrowth
31.9%10/10

Revenue surging 31.9% year-over-year

EPS GrowthGrowth
52.5%10/10

Earnings expanding 52.5% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.9510/10

Safe zone — low bankruptcy risk

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.922/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

KRYS1 concerns · Avg: 4.0/10
P/E RatioValuation
39.7x4/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : KRYS

The strongest argument for KRYS centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 53.9% and operating margin at 46.1%. Revenue growth of 31.9% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : KRYS

The primary concerns for KRYS are P/E Ratio.

Key Dynamics to Monitor

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

KRYS carries more volatility with a beta of 0.49 — expect wider price swings.

KRYS is growing revenue faster at 31.9% — sustainability is the question.

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

Bottom Line

KRYS scores higher overall (65/100 vs 59/100), backed by strong 53.9% margins and 31.9% 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.

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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Krystal Biotech Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Krystal Biotech, Inc., a clinical-stage biotechnology company, is dedicated to the field of redosable gene therapy to treat serious rare diseases in the United States. The company is headquartered in Pittsburgh, Pennsylvania.

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