Johnson & Johnson (JNJ)vsMicrosoft Corporation (MSFT)
JNJ
Johnson & Johnson
$239.93
-0.25%
HEALTHCARE · Cap: $578.21B
MSFT
Microsoft Corporation
$371.04
-1.37%
TECHNOLOGY · Cap: $2.76T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 224% more annual revenue ($305.45B vs $94.19B). MSFT leads profitability with a 39.0% profit margin vs 28.5%. MSFT appears more attractively valued with a PEG of 1.25. MSFT earns a higher WallStSmart Score of 74/100 (B).
JNJ
Strong Buy71
out of 100
Grade: B
MSFT
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.7%
Fair Value
$516.67
Current Price
$239.93
$276.74 discount
Margin of Safety
+51.1%
Fair Value
$748.33
Current Price
$371.04
$377.29 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 47.1%
Earnings expanding 59.8% YoY
16.7% revenue growth
Areas to Watch
Expensive relative to growth rate
No major concerns identified
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 28.5% and operating margin at 24.0%.
Bull Case : MSFT
The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.0% and operating margin at 47.1%. Revenue growth of 16.7% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Bear Case : MSFT
No major red flags identified for MSFT, but monitor valuation.
Key Dynamics to Monitor
JNJ profiles as a mature stock while MSFT is a growth play — different risk/reward profiles.
MSFT carries more volatility with a beta of 1.11 — expect wider price swings.
MSFT is growing revenue faster at 16.7% — sustainability is the question.
MSFT generates stronger free cash flow (5.9B), providing more financial flexibility.
Bottom Line
MSFT scores higher overall (74/100 vs 71/100), backed by strong 39.0% margins and 16.7% revenue growth. JNJ offers better value entry with a 53.7% margin of safety. Both earn "Strong Buy" and "Strong 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 →Microsoft Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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