WallStSmart

Johnson & Johnson (JNJ)vsMastercard Inc (MA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 187% more annual revenue ($94.19B vs $32.79B). MA leads profitability with a 45.7% profit margin vs 28.5%. MA appears more attractively valued with a PEG of 1.60. JNJ earns a higher WallStSmart Score of 71/100 (B).

JNJ

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 9.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.62

MA

Strong Buy

70

out of 100

Grade: B

Growth: 8.0Profit: 8.5Value: 10.0Quality: 6.0
Piotroski: 6/9Altman Z: 4.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJUndervalued (+54.5%)

Margin of Safety

+54.5%

Fair Value

$516.67

Current Price

$239.93

$276.74 discount

UndervaluedFair: $516.67Overvalued
MAUndervalued (+33.1%)

Margin of Safety

+33.1%

Fair Value

$751.54

Current Price

$502.76

$248.78 discount

UndervaluedFair: $751.54Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ6 strengths · Avg: 8.8/10
Market CapQuality
$567.22B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.0%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
28.5%9/10

Keeps 28 of every $100 in revenue as profit

Operating MarginProfitability
24.0%8/10

Strong operational efficiency at 24.0%

EPS GrowthGrowth
48.6%8/10

Earnings expanding 48.6% YoY

Free Cash FlowQuality
$5.47B8/10

Generating 5.5B in free cash flow

MA6 strengths · Avg: 9.3/10
Market CapQuality
$445.26B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
45.7%10/10

Keeps 46 of every $100 in revenue as profit

Operating MarginProfitability
57.7%10/10

Strong operational efficiency at 57.7%

Altman Z-ScoreHealth
4.0810/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

EPS GrowthGrowth
24.2%8/10

Earnings expanding 24.2% YoY

Areas to Watch

JNJ1 concerns · Avg: 4.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

MA4 concerns · Avg: 3.3/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

P/E RatioValuation
30.2x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
2.1%3/10

ROE of 2.1% — below average capital efficiency

Price/BookValuation
58.1x2/10

Trading at 58.1x book value

Comparative Analysis Report

WallStSmart Research

Bull 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 : MA

The strongest argument for MA centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 45.7% and operating margin at 57.7%. Revenue growth of 17.6% demonstrates continued momentum.

Bear Case : JNJ

The primary concerns for JNJ are PEG Ratio.

Bear Case : MA

The primary concerns for MA are PEG Ratio, P/E Ratio, Return on Equity. Debt-to-equity of 2.45 is elevated, increasing financial risk.

Key Dynamics to Monitor

JNJ profiles as a mature stock while MA is a growth play — different risk/reward profiles.

MA carries more volatility with a beta of 0.84 — expect wider price swings.

MA is growing revenue faster at 17.6% — sustainability is the question.

JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (71/100 vs 70/100), backed by strong 28.5% margins. MA offers better value entry with a 33.1% 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.

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Mastercard Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Mastercard Incorporated is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York. The Global Operations Headquarters is located in O'Fallon, Missouri, a municipality of St. Charles County, Missouri. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard brand debit, credit and prepaid cards to make purchases. Mastercard Worldwide has been a publicly traded company since 2006.

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