Johnson & Johnson (JNJ)vsMasimo Corporation (MASI)
JNJ
Johnson & Johnson
$232.77
+1.07%
HEALTHCARE · Cap: $536.54B
MASI
Masimo Corporation
$178.82
-0.04%
HEALTHCARE · Cap: $9.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 6083% more annual revenue ($96.36B vs $1.56B). JNJ leads profitability with a 21.8% profit margin vs 4.9%. JNJ appears more attractively valued with a PEG of 2.91. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
MASI
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-71.4%
Fair Value
$135.80
Current Price
$232.77
$96.97 premium
Margin of Safety
+4.8%
Fair Value
$141.85
Current Price
$178.82
$36.97 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
Earnings expanding 214.4% YoY
Safe zone — low bankruptcy risk
Strong operational efficiency at 23.6%
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Trading at 11.9x book value
4.9% margin — thin
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 : MASI
The strongest argument for MASI centers on EPS Growth, Altman Z-Score, Operating Margin.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : MASI
The primary concerns for MASI are Price/Book, Profit Margin, PEG Ratio. A P/E of 44.4x leaves little room for execution misses. Thin 4.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
JNJ profiles as a mature stock while MASI is a value play — different risk/reward profiles.
MASI carries more volatility with a beta of 1.10 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 56/100), backed by strong 21.8% margins. Both earn "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 →Masimo Corporation
HEALTHCARE · MEDICAL DEVICES · USA
Masimo Corporation develops, manufactures and markets non-invasive monitoring technologies and hospital automation solutions globally. The company is headquartered in Irvine, California.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?