Johnson & Johnson (JNJ)vsLigand Pharmaceuticals Incorporated (LGND)
JNJ
Johnson & Johnson
$266.19
-1.62%
HEALTHCARE · Cap: $657.68B
LGND
Ligand Pharmaceuticals Incorporated
$307.02
-4.87%
HEALTHCARE · Cap: $6.33B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 34090% more annual revenue ($99.33B vs $290.54M). LGND leads profitability with a 67.9% profit margin vs 16.2%. LGND appears more attractively valued with a PEG of 1.53. LGND earns a higher WallStSmart Score of 67/100 (B-).
JNJ
Buy54
out of 100
Grade: C-
LGND
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.3%
Fair Value
$144.28
Current Price
$266.19
$121.91 premium
Margin of Safety
-6.3%
Fair Value
$174.97
Current Price
$307.02
$132.05 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.7%
Generating 6.4B in free cash flow
Keeps 68 of every $100 in revenue as profit
Revenue surging 33.7% year-over-year
Earnings expanding 825.0% YoY
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 95.9%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : LGND
The strongest argument for LGND centers on Profit Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 67.9% and operating margin at 13.5%. Revenue growth of 33.7% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are Piotroski F-Score, PEG Ratio, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.
Bear Case : LGND
The primary concerns for LGND are PEG Ratio, P/E Ratio, Debt/Equity.
Key Dynamics to Monitor
JNJ profiles as a mature stock while LGND is a growth play — different risk/reward profiles.
LGND carries more volatility with a beta of 1.01 — expect wider price swings.
LGND is growing revenue faster at 33.7% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
LGND scores higher overall (67/100 vs 54/100), backed by strong 67.9% margins and 33.7% 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.
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 →Ligand Pharmaceuticals Incorporated
HEALTHCARE · BIOTECHNOLOGY · USA
Ligand Pharmaceuticals Incorporated, a biopharmaceutical company, focuses on developing or acquiring technologies that help pharmaceutical companies discover and develop drugs globally. The company is headquartered in San Diego, California.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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