WallStSmart

Johnson & Johnson (JNJ)vsOmeros Corporation (OMER)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 973942% more annual revenue ($96.36B vs $9.89M). OMER leads profitability with a 871.0% profit margin vs 21.8%. OMER appears more attractively valued with a PEG of 0.81. 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

OMER

Hold

41

out of 100

Grade: D

Growth: 5.0Profit: 4.0Value: 9.3Quality: 6.5
Piotroski: 3/9Altman Z: -4.67
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
OMERUndervalued (+55.4%)

Margin of Safety

+55.4%

Fair Value

$25.16

Current Price

$10.16

$15.00 discount

UndervaluedFair: $25.16Overvalued

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

OMER4 strengths · Avg: 9.5/10
P/E RatioValuation
8.6x10/10

Attractively priced relative to earnings

Profit MarginProfitability
871.0%10/10

Keeps 871 of every $100 in revenue as profit

Debt/EquityHealth
-4.9010/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.818/10

Growing faster than its price suggests

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%

OMER4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$708.55M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-576.0%2/10

ROE of -576.0% — 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 : OMER

The strongest argument for OMER centers on P/E Ratio, Profit Margin, Debt/Equity. Profitability is solid with margins at 871.0% and operating margin at -176.1%. Revenue growth of 14.9% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : OMER

The primary concerns for OMER are EPS Growth, Market Cap, Piotroski F-Score.

Key Dynamics to Monitor

OMER carries more volatility with a beta of 2.53 — expect wider price swings.

OMER is growing revenue faster at 14.9% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

JNJ scores higher overall (59/100 vs 41/100), backed by strong 21.8% margins. OMER offers better value entry with a 55.4% margin of safety. Both earn "Buy" and "Hold" 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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Omeros Corporation

HEALTHCARE · BIOTECHNOLOGY · USA

Omeros Corporation, a commercial-stage biopharmaceutical company, discovers, develops, and markets protein and small molecule therapies, and orphan indications targeting inflammation, complement-mediated diseases, central nervous system (CNS) disorders, and system-related diseases. immunological. The company is headquartered in Seattle, Washington.

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