Johnson & Johnson (JNJ)vsMedtronic PLC (MDT)
JNJ
Johnson & Johnson
$221.32
-0.53%
HEALTHCARE · Cap: $535.63B
MDT
Medtronic PLC
$76.15
-2.32%
HEALTHCARE · Cap: $100.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 172% more annual revenue ($96.36B vs $35.48B). JNJ leads profitability with a 21.8% profit margin vs 13.0%. MDT appears more attractively valued with a PEG of 1.36. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
MDT
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.5%
Fair Value
$160.72
Current Price
$221.32
$60.60 premium
Margin of Safety
+27.7%
Fair Value
$107.79
Current Price
$76.15
$31.64 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
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 20.0%
Generating 2.3B in free cash flow
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Earnings declined 11.8%
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 : MDT
The strongest argument for MDT centers on Market Cap, Price/Book, Operating Margin. PEG of 1.36 suggests the stock is reasonably priced for its growth.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : MDT
The primary concerns for MDT are EPS Growth.
Key Dynamics to Monitor
JNJ profiles as a mature stock while MDT is a value play — different risk/reward profiles.
MDT carries more volatility with a beta of 0.63 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
MDT generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 58/100), backed by strong 21.8% margins. MDT offers better value entry with a 27.7% margin of safety. 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 →Medtronic PLC
HEALTHCARE · MEDICAL DEVICES · USA
Medtronic plc is an American-Irish registered medical device company that primarily operates in the United States. Medtronic has an operational and executive headquarters in Fridley, Minnesota in the US.
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