WallStSmart

Johnson & Johnson (JNJ)vsNovo Nordisk A/S (NVO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Novo Nordisk A/S generates 240% more annual revenue ($327.80B vs $96.36B). NVO leads profitability with a 37.2% profit margin vs 21.8%. JNJ appears more attractively valued with a PEG of 3.06. NVO earns a higher WallStSmart Score of 73/100 (B).

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

NVO

Strong Buy

73

out of 100

Grade: B

Growth: 9.3Profit: 10.0Value: 5.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.13
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-73.2%)

Margin of Safety

-73.2%

Fair Value

$135.80

Current Price

$232.77

$96.97 premium

UndervaluedFair: $135.80Overvalued

Intrinsic value data unavailable for NVO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$567.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
25.9%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

NVO6 strengths · Avg: 10.0/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
60.1%10/10

Every $100 of equity generates 60 in profit

Profit MarginProfitability
37.2%10/10

Keeps 37 of every $100 in revenue as profit

Operating MarginProfitability
61.6%10/10

Strong operational efficiency at 61.6%

EPS GrowthGrowth
67.1%10/10

Earnings expanding 67.1% YoY

Free Cash FlowQuality
$12.04B10/10

Generating 12.0B in free cash flow

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
27.3x4/10

Moderate valuation

PEG RatioValuation
3.062/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

NVO2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.192/10

Expensive relative to growth rate

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 21.8% and operating margin at 27.4%.

Bull Case : NVO

The strongest argument for NVO centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 37.2% and operating margin at 61.6%. Revenue growth of 24.0% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : NVO

The primary concerns for NVO are Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

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

NVO carries more volatility with a beta of 0.35 — expect wider price swings.

NVO is growing revenue faster at 24.0% — sustainability is the question.

NVO generates stronger free cash flow (12.0B), providing more financial flexibility.

Bottom Line

NVO scores higher overall (73/100 vs 57/100), backed by strong 37.2% margins and 24.0% 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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Novo Nordisk A/S

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Novo Nordisk A / S, a healthcare company, is dedicated to the research, development, manufacture and marketing of pharmaceutical products globally. The company is headquartered in Bagsvaerd, Denmark.

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