Johnson & Johnson (JNJ)vsEli Lilly and Company (LLY)
JNJ
Johnson & Johnson
$266.19
-1.62%
HEALTHCARE · Cap: $657.68B
LLY
Eli Lilly and Company
$1,409.27
-0.11%
HEALTHCARE · Cap: $1.26T
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 15% more annual revenue ($99.33B vs $86.46B). LLY leads profitability with a 31.9% profit margin vs 16.2%. LLY appears more attractively valued with a PEG of 1.36. LLY earns a higher WallStSmart Score of 74/100 (B).
JNJ
Buy54
out of 100
Grade: C-
LLY
Strong Buy74
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
Intrinsic value data unavailable for LLY.
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
Mega-cap, among the largest globally
Every $100 of equity generates 79 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 53.7%
Revenue surging 38.6% year-over-year
Generating 7.8B in free cash flow
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 95.9%
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 31.2x book value
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 : LLY
The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.9% and operating margin at 53.7%. Revenue growth of 38.6% 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 : LLY
The primary concerns for LLY are Debt/Equity, P/E Ratio, Price/Book. A P/E of 46.0x leaves little room for execution misses. Debt-to-equity of 1.62 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 0.45 — expect wider price swings.
LLY is growing revenue faster at 38.6% — sustainability is the question.
LLY generates stronger free cash flow (7.8B), providing more financial flexibility.
Bottom Line
LLY scores higher overall (74/100 vs 54/100), backed by strong 31.9% margins and 38.6% 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 →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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