Johnson & Johnson (JNJ)vsNovocure Ltd (NVCR)
JNJ
Johnson & Johnson
$229.85
+1.10%
HEALTHCARE · Cap: $547.28B
NVCR
Novocure Ltd
$15.21
+27.49%
HEALTHCARE · Cap: $1.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 14604% more annual revenue ($96.36B vs $655.35M). JNJ leads profitability with a 21.8% profit margin vs -20.8%. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
NVCR
Avoid28
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-43.5%
Fair Value
$160.13
Current Price
$229.85
$69.72 premium
Margin of Safety
+83.6%
Fair Value
$64.09
Current Price
$15.21
$48.88 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
No standout strengths identified
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Smaller company, higher risk/reward
ROE of -38.9% — below average capital efficiency
Earnings declined 6.0%
Negative free cash flow — burning cash
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 : NVCR
NVCR has a balanced fundamental profile.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : NVCR
The primary concerns for NVCR are Market Cap, Return on Equity, EPS Growth.
Key Dynamics to Monitor
JNJ profiles as a mature stock while NVCR is a turnaround play — different risk/reward profiles.
NVCR carries more volatility with a beta of 0.82 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 28/100), backed by strong 21.8% margins. NVCR offers better value entry with a 83.6% margin of safety. 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.
Visit Website →Novocure Ltd
HEALTHCARE · MEDICAL DEVICES · USA
NovoCure Limited, an oncology company, is engaged in the development, manufacture and marketing of Optune for the treatment of a variety of solid tumors. The company is headquartered in Saint Helier, Jersey.
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