WallStSmart

Johnson & Johnson (JNJ)vsNexgel Inc (NXGL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 855311% more annual revenue ($96.36B vs $11.27M). JNJ leads profitability with a 21.8% profit margin vs -28.5%. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

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

NXGL

Avoid

28

out of 100

Grade: F

Growth: 5.3Profit: 2.0Value: 6.7Quality: 4.5
Piotroski: 5/9Altman Z: -1.93
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-71.4%)

Margin of Safety

-71.4%

Fair Value

$135.80

Current Price

$232.77

$96.97 premium

UndervaluedFair: $135.80Overvalued
NXGLUndervalued (+48.1%)

Margin of Safety

+48.1%

Fair Value

$2.70

Current Price

$0.56

$2.14 discount

UndervaluedFair: $2.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$536.54B10/10

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

NXGL1 strengths · Avg: 10.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.912/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

NXGL4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$5.16M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.053/10

Elevated debt levels

Return on EquityProfitability
-80.5%2/10

ROE of -80.5% — below average capital efficiency

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 : NXGL

The strongest argument for NXGL centers on Price/Book.

Bear Case : JNJ

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

Bear Case : NXGL

The primary concerns for NXGL are EPS Growth, Market Cap, Debt/Equity.

Key Dynamics to Monitor

JNJ profiles as a mature stock while NXGL is a turnaround play — different risk/reward profiles.

NXGL carries more volatility with a beta of 0.74 — 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. NXGL offers better value entry with a 48.1% 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 →

Nexgel Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

NEXGEL, Inc. manufactures aqueous, electron beam crosslinked, high water content hydrogels and polymeric gels. The company is headquartered in Langhorne, Pennsylvania.

Want to dig deeper into these stocks?