Johnson & Johnson (JNJ)vsMerck & Company Inc (MRK)
JNJ
Johnson & Johnson
$232.77
-2.48%
HEALTHCARE · Cap: $567.28B
MRK
Merck & Company Inc
$120.79
-1.36%
HEALTHCARE · Cap: $283.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 47% more annual revenue ($96.36B vs $65.77B). JNJ leads profitability with a 21.8% profit margin vs 13.6%. JNJ appears more attractively valued with a PEG of 3.06. JNJ earns a higher WallStSmart Score of 57/100 (C).
JNJ
Buy57
out of 100
Grade: C
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-67.8%
Fair Value
$136.12
Current Price
$232.77
$96.65 premium
Margin of Safety
-42.4%
Fair Value
$80.88
Current Price
$120.79
$39.91 premium
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
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
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 : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
JNJ profiles as a mature stock while MRK is a value play — different risk/reward profiles.
JNJ carries more volatility with a beta of 0.26 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 50/100), backed by strong 21.8% margins. Both earn "Buy" and "Hold" 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 →Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
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