WallStSmart

Johnson & Johnson (JNJ)vsOrganon & Co (OGN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1464% more annual revenue ($96.36B vs $6.16B). JNJ leads profitability with a 21.8% profit margin vs 4.0%. OGN trades at a lower P/E of 14.4x. OGN earns a higher WallStSmart Score of 58/100 (C).

JNJ

Buy

57

out of 100

Grade: C

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

OGN

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 7.0Value: 7.7Quality: 4.0
Piotroski: 3/9Altman Z: 1.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-67.8%)

Margin of Safety

-67.8%

Fair Value

$136.12

Current Price

$231.29

$95.17 premium

UndervaluedFair: $136.12Overvalued
OGNUndervalued (+38.3%)

Margin of Safety

+38.3%

Fair Value

$12.46

Current Price

$13.40

$0.94 discount

UndervaluedFair: $12.46Overvalued

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

OGN3 strengths · Avg: 9.3/10
Return on EquityProfitability
34.1%10/10

Every $100 of equity generates 34 in profit

EPS GrowthGrowth
66.7%10/10

Earnings expanding 66.7% YoY

P/E RatioValuation
14.4x8/10

Attractively priced relative to earnings

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%

OGN4 concerns · Avg: 2.5/10
Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-3.5%2/10

Revenue declined 3.5%

Altman Z-ScoreHealth
1.062/10

Distress zone — elevated risk

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 : OGN

The strongest argument for OGN centers on Return on Equity, EPS Growth, P/E Ratio.

Bear Case : JNJ

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

Bear Case : OGN

The primary concerns for OGN are Profit Margin, Piotroski F-Score, Revenue Growth. Debt-to-equity of 9.49 is elevated, increasing financial risk. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

JNJ profiles as a mature stock while OGN is a value play — different risk/reward profiles.

OGN carries more volatility with a beta of 1.54 — 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

OGN scores higher overall (58/100 vs 57/100). Both earn "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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Organon & Co

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Organon & Co. is an American pharmaceutical company headquartered in Jersey City, New Jersey. Organon specializes in the following core therapeutic fields: reproductive medicine, contraception, psychiatry, Hormone replacement therapy (HRT), and anesthesia. The company sells to international markets.

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