Johnson & Johnson (JNJ)vsPenumbra Inc (PEN)
JNJ
Johnson & Johnson
$221.32
-0.53%
HEALTHCARE · Cap: $535.63B
PEN
Penumbra Inc
$322.23
-0.75%
HEALTHCARE · Cap: $12.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 6765% more annual revenue ($96.36B vs $1.40B). JNJ leads profitability with a 21.8% profit margin vs 12.7%. PEN appears more attractively valued with a PEG of 0.73. PEN earns a higher WallStSmart Score of 64/100 (C+).
JNJ
Buy59
out of 100
Grade: C
PEN
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.5%
Fair Value
$160.72
Current Price
$221.32
$60.60 premium
Margin of Safety
+0.8%
Fair Value
$340.90
Current Price
$322.23
$18.67 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Revenue surging 22.1% year-over-year
Earnings expanding 38.3% YoY
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Trading at 8.9x book value
Premium valuation, high expectations priced in
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 21.8% and operating margin at 27.4%.
Bull Case : PEN
The strongest argument for PEN centers on Altman Z-Score, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.73 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 : PEN
The primary concerns for PEN are Price/Book, P/E Ratio. A P/E of 74.7x leaves little room for execution misses.
Key Dynamics to Monitor
JNJ profiles as a mature stock while PEN is a growth play — different risk/reward profiles.
PEN carries more volatility with a beta of 0.73 — expect wider price swings.
PEN is growing revenue faster at 22.1% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
PEN scores higher overall (64/100 vs 59/100) and 22.1% revenue growth. 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.
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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