WallStSmart

Johnson & Johnson (JNJ)vsOracle Corporation (ORCL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 47% more annual revenue ($94.19B vs $64.08B). JNJ leads profitability with a 28.5% profit margin vs 25.3%. ORCL appears more attractively valued with a PEG of 0.95. ORCL earns a higher WallStSmart Score of 76/100 (B+).

JNJ

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 9.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.62

ORCL

Strong Buy

76

out of 100

Grade: B+

Growth: 8.0Profit: 9.0Value: 10.0Quality: 2.5
Piotroski: 2/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJUndervalued (+54.5%)

Margin of Safety

+54.5%

Fair Value

$516.67

Current Price

$239.93

$276.74 discount

UndervaluedFair: $516.67Overvalued
ORCLUndervalued (+40.2%)

Margin of Safety

+40.2%

Fair Value

$244.26

Current Price

$146.02

$98.24 discount

UndervaluedFair: $244.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ6 strengths · Avg: 8.8/10
Market CapQuality
$567.22B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.0%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
28.5%9/10

Keeps 28 of every $100 in revenue as profit

Operating MarginProfitability
24.0%8/10

Strong operational efficiency at 24.0%

EPS GrowthGrowth
48.6%8/10

Earnings expanding 48.6% YoY

Free Cash FlowQuality
$5.47B8/10

Generating 5.5B in free cash flow

ORCL6 strengths · Avg: 9.2/10
Market CapQuality
$423.04B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
57.6%10/10

Every $100 of equity generates 58 in profit

Operating MarginProfitability
32.7%10/10

Strong operational efficiency at 32.7%

Profit MarginProfitability
25.3%9/10

Keeps 25 of every $100 in revenue as profit

PEG RatioValuation
0.958/10

Growing faster than its price suggests

Revenue GrowthGrowth
21.7%8/10

Revenue surging 21.7% year-over-year

Areas to Watch

JNJ1 concerns · Avg: 4.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

ORCL4 concerns · Avg: 3.3/10
P/E RatioValuation
27.7x4/10

Moderate valuation

Price/BookValuation
12.5x4/10

Trading at 12.5x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-11.48B2/10

Negative free cash flow — burning cash

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 28.5% and operating margin at 24.0%.

Bull Case : ORCL

The strongest argument for ORCL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 25.3% and operating margin at 32.7%. Revenue growth of 21.7% demonstrates continued momentum.

Bear Case : JNJ

The primary concerns for JNJ are PEG Ratio.

Bear Case : ORCL

The primary concerns for ORCL are P/E Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 4.15 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

ORCL carries more volatility with a beta of 1.65 — expect wider price swings.

ORCL is growing revenue faster at 21.7% — sustainability is the question.

JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.

Bottom Line

ORCL scores higher overall (76/100 vs 71/100), backed by strong 25.3% margins and 21.7% revenue growth. JNJ offers better value entry with a 54.5% margin of safety. Both earn "Strong Buy" and "Strong 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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Oracle Corporation

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Oracle is an American multinational computer technology corporation headquartered in Austin, Texas. The company was formerly headquartered in Redwood Shores, California until December 2020 when it moved its headquarters to Texas. The company sells database software and technology, cloud engineered systems, and enterprise software products, particularly its own brands of database management systems.

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