WallStSmart

Johnson & Johnson (JNJ)vsPuma Biotechnology Inc (PBYI)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 42095% more annual revenue ($96.36B vs $228.37M). JNJ leads profitability with a 21.8% profit margin vs 13.6%. PBYI appears more attractively valued with a PEG of 0.03. PBYI earns a higher WallStSmart Score of 71/100 (B).

JNJ

Buy

59

out of 100

Grade: C

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

PBYI

Strong Buy

71

out of 100

Grade: B

Growth: 4.7Profit: 8.0Value: 9.3Quality: 5.0
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$229.85

$69.72 premium

UndervaluedFair: $160.13Overvalued
PBYIUndervalued (+76.6%)

Margin of Safety

+76.6%

Fair Value

$28.43

Current Price

$7.48

$20.95 discount

UndervaluedFair: $28.43Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%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

PBYI6 strengths · Avg: 8.5/10
PEG RatioValuation
0.0310/10

Growing faster than its price suggests

Return on EquityProfitability
28.0%9/10

Every $100 of equity generates 28 in profit

P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.7%8/10

Strong operational efficiency at 22.7%

Revenue GrowthGrowth
27.7%8/10

Revenue surging 27.7% year-over-year

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

PBYI2 concerns · Avg: 2.5/10
Market CapQuality
$382.08M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-34.4%2/10

Earnings declined 34.4%

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 : PBYI

The strongest argument for PBYI centers on PEG Ratio, Return on Equity, P/E Ratio. Revenue growth of 27.7% demonstrates continued momentum. PEG of 0.03 suggests the stock is reasonably priced for its growth.

Bear Case : JNJ

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

Bear Case : PBYI

The primary concerns for PBYI are Market Cap, EPS Growth.

Key Dynamics to Monitor

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

PBYI carries more volatility with a beta of 1.18 — expect wider price swings.

PBYI is growing revenue faster at 27.7% — sustainability is the question.

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

Bottom Line

PBYI scores higher overall (71/100 vs 59/100) and 27.7% 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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Puma Biotechnology Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to improve cancer care in the United States and internationally. The company is headquartered in Los Angeles, California.

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