Johnson & Johnson (JNJ)vsEli Lilly and Company (LLY)
JNJ
Johnson & Johnson
$237.28
+0.13%
HEALTHCARE · Cap: $573.82B
LLY
Eli Lilly and Company
$918.05
-0.06%
HEALTHCARE · Cap: $885.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 45% more annual revenue ($94.19B vs $65.18B). LLY leads profitability with a 31.7% profit margin vs 28.5%. LLY appears more attractively valued with a PEG of 1.06. LLY earns a higher WallStSmart Score of 78/100 (B+).
JNJ
Strong Buy71
out of 100
Grade: B
LLY
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.9%
Fair Value
$515.74
Current Price
$237.28
$278.46 discount
Margin of Safety
+14.6%
Fair Value
$1074.06
Current Price
$918.05
$156.01 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.9%
Revenue surging 42.6% year-over-year
Earnings expanding 51.4% YoY
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 31.0x book value
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 28.5% and operating margin at 24.0%.
Bull Case : LLY
The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Bear Case : LLY
The primary concerns for LLY are Debt/Equity, P/E Ratio, Price/Book. A P/E of 43.1x leaves little room for execution misses. Debt-to-equity of 1.60 is elevated, increasing financial risk.
Key Dynamics to Monitor
JNJ profiles as a mature stock while LLY is a growth play — different risk/reward profiles.
LLY carries more volatility with a beta of 0.43 — expect wider price swings.
LLY is growing revenue faster at 42.6% — sustainability is the question.
JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.
Bottom Line
LLY scores higher overall (78/100 vs 71/100), backed by strong 31.7% margins and 42.6% revenue growth. JNJ offers better value entry with a 53.9% margin of safety. Both earn "Strong Buy" and "Strong 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 →Eli Lilly and Company
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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