WallStSmart

Johnson & Johnson (JNJ)vsMedpace Holdings Inc (MEDP)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 3420% more annual revenue ($97.93B vs $2.78B). JNJ leads profitability with a 21.5% profit margin vs 17.7%. JNJ appears more attractively valued with a PEG of 2.79. MEDP earns a higher WallStSmart Score of 68/100 (B-).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

MEDP

Strong Buy

68

out of 100

Grade: B-

Growth: 9.3Profit: 9.0Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 1.83
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$265.58

$125.01 premium

UndervaluedFair: $140.57Overvalued
MEDPSignificantly Overvalued (-39.2%)

Margin of Safety

-39.2%

Fair Value

$304.57

Current Price

$587.52

$282.95 premium

UndervaluedFair: $304.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$640.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

MEDP5 strengths · Avg: 8.6/10
Return on EquityProfitability
113.3%10/10

Every $100 of equity generates 113 in profit

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Operating MarginProfitability
20.8%8/10

Strong operational efficiency at 20.8%

Revenue GrowthGrowth
17.2%8/10

17.2% revenue growth

EPS GrowthGrowth
37.1%8/10

Earnings expanding 37.1% YoY

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

MEDP4 concerns · Avg: 3.0/10
P/E RatioValuation
34.7x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.834/10

Grey zone — moderate risk

PEG RatioValuation
2.812/10

Expensive relative to growth rate

Price/BookValuation
37.8x2/10

Trading at 37.8x 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 21.5% and operating margin at 29.2%.

Bull Case : MEDP

The strongest argument for MEDP centers on Return on Equity, Debt/Equity, Operating Margin. Profitability is solid with margins at 17.7% and operating margin at 20.8%. Revenue growth of 17.2% demonstrates continued momentum.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Bear Case : MEDP

The primary concerns for MEDP are P/E Ratio, Altman Z-Score, PEG Ratio.

Key Dynamics to Monitor

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

MEDP carries more volatility with a beta of 1.15 — expect wider price swings.

MEDP is growing revenue faster at 17.2% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

MEDP scores higher overall (68/100 vs 59/100), backed by strong 17.7% margins and 17.2% 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.

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Medpace Holdings Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Medpace Holdings, Inc. provides clinical research-based drug and medical device development services in North America, Europe, and Asia. The company is headquartered in Cincinnati, Ohio.

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