Johnson & Johnson (JNJ)vsLigand Pharmaceuticals Incorporated (LGND)
JNJ
Johnson & Johnson
$224.62
-0.41%
HEALTHCARE · Cap: $546.90B
LGND
Ligand Pharmaceuticals Incorporated
$232.55
+0.11%
HEALTHCARE · Cap: $2.76B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 35844% more annual revenue ($96.36B vs $268.09M). LGND leads profitability with a 46.4% profit margin vs 21.8%. LGND appears more attractively valued with a PEG of 1.53. LGND earns a higher WallStSmart Score of 71/100 (B).
JNJ
Buy59
out of 100
Grade: C
LGND
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-40.3%
Fair Value
$160.72
Current Price
$224.62
$63.90 premium
Margin of Safety
+31.7%
Fair Value
$272.20
Current Price
$232.55
$39.65 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
Keeps 46 of every $100 in revenue as profit
Strong operational efficiency at 33.6%
Revenue surging 39.4% year-over-year
Earnings expanding 103.2% YoY
Safe zone — low bankruptcy risk
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : LGND
The strongest argument for LGND centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 46.4% and operating margin at 33.6%. Revenue growth of 39.4% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : LGND
The primary concerns for LGND are PEG Ratio, P/E Ratio.
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 1.00 — expect wider price swings.
LGND is growing revenue faster at 39.4% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
LGND scores higher overall (71/100 vs 59/100), backed by strong 46.4% margins and 39.4% 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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