WallStSmart

Johnson & Johnson (JNJ)vsMadrigal Pharmaceuticals Inc (MDGL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 7637% more annual revenue ($99.33B vs $1.28B). JNJ leads profitability with a 16.2% profit margin vs -25.3%. JNJ earns a higher WallStSmart Score of 57/100 (C).

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

MDGL

Avoid

31

out of 100

Grade: F

Growth: 6.3Profit: 2.0Value: 5.0Quality: 5.5
Piotroski: 3/9Altman Z: -0.82
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-83.0%)

Margin of Safety

-83.0%

Fair Value

$144.12

Current Price

$271.17

$127.05 premium

UndervaluedFair: $144.12Overvalued

Intrinsic value data unavailable for MDGL.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$615.87B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.1%8/10

Strong operational efficiency at 25.1%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

MDGL1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
71.2%10/10

Revenue surging 71.2% year-over-year

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-96.0%2/10

Earnings declined 96.0%

MDGL4 concerns · Avg: 3.3/10
Price/BookValuation
19.4x4/10

Trading at 19.4x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-62.1%2/10

ROE of -62.1% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull 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 25.1%.

Bull Case : MDGL

The strongest argument for MDGL centers on Revenue Growth. Revenue growth of 71.2% demonstrates continued momentum.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : MDGL

The primary concerns for MDGL are Price/Book, EPS Growth, Piotroski F-Score.

Key Dynamics to Monitor

JNJ profiles as a mature stock while MDGL is a hypergrowth play — different risk/reward profiles.

JNJ carries more volatility with a beta of 0.21 — expect wider price swings.

MDGL is growing revenue faster at 71.2% — sustainability is the question.

JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (57/100 vs 31/100), backed by strong 16.2% margins. Both earn "Buy" and "Avoid" 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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Madrigal Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Madrigal Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapeutic candidates for the treatment of cardiovascular, metabolic and liver diseases. The company is headquartered in West Conshohocken, Pennsylvania.

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