Johnson & Johnson (JNJ)vsPenumbra Inc (PEN)
JNJ
Johnson & Johnson
$259.24
+0.88%
HEALTHCARE · Cap: $614.36B
PEN
Penumbra Inc
$324.66
-0.06%
HEALTHCARE · Cap: $12.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 6407% more annual revenue ($97.93B vs $1.50B). JNJ leads profitability with a 21.5% profit margin vs 10.7%. PEN appears more attractively valued with a PEG of 4.11. JNJ earns a higher WallStSmart Score of 57/100 (C).
JNJ
Buy57
out of 100
Grade: C
PEN
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.8%
Fair Value
$139.37
Current Price
$259.24
$119.87 premium
Margin of Safety
-8.2%
Fair Value
$312.67
Current Price
$324.66
$11.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 0.9%
Trading at 8.7x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 23.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.5% and operating margin at 29.2%.
Bull Case : PEN
The strongest argument for PEN centers on Altman Z-Score, Debt/Equity. 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 : PEN
The primary concerns for PEN are Price/Book, PEG Ratio, P/E Ratio. A P/E of 78.7x leaves little room for execution misses.
Key Dynamics to Monitor
JNJ profiles as a mature stock while PEN is a value play — different risk/reward profiles.
PEN carries more volatility with a beta of 0.70 — expect wider price swings.
PEN is growing revenue faster at 14.9% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 42/100), backed by strong 21.5% margins. 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.
Visit Website →Penumbra Inc
HEALTHCARE · MEDICAL DEVICES · USA
Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, and internationally. The company is headquartered in Alameda, California.
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