Johnson & Johnson (JNJ)vsLegend Biotech Corp (LEGN)
JNJ
Johnson & Johnson
$221.32
-0.53%
HEALTHCARE · Cap: $535.63B
LEGN
Legend Biotech Corp
$28.12
-1.58%
HEALTHCARE · Cap: $5.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 9266% more annual revenue ($96.36B vs $1.03B). JNJ leads profitability with a 21.8% profit margin vs -28.8%. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
LEGN
Avoid33
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.5%
Fair Value
$160.72
Current Price
$221.32
$60.60 premium
Margin of Safety
+22.3%
Fair Value
$23.87
Current Price
$28.12
$4.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Revenue surging 64.2% year-over-year
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
0.0% earnings growth
Weak financial health signals
ROE of -29.1% — below average capital efficiency
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : LEGN
The strongest argument for LEGN centers on Revenue Growth. Revenue growth of 64.2% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : LEGN
The primary concerns for LEGN are EPS Growth, Piotroski F-Score, Return on Equity.
Key Dynamics to Monitor
JNJ profiles as a mature stock while LEGN is a hypergrowth play — different risk/reward profiles.
LEGN carries more volatility with a beta of 0.30 — expect wider price swings.
LEGN is growing revenue faster at 64.2% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 33/100), backed by strong 21.8% margins. LEGN offers better value entry with a 22.3% margin of safety. Both earn "Buy" and "Avoid" 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.
Visit Website →Legend Biotech Corp
HEALTHCARE · BIOTECHNOLOGY · USA
Legend Biotech Corporation, a clinical-stage biopharmaceutical company, is dedicated to the discovery and development of new cell therapies for oncology and other indications in North America and internationally.
Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?