WallStSmart

Johnson & Johnson (JNJ)vsPetMed Express Inc (PETS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 57896% more annual revenue ($97.93B vs $168.86M). JNJ leads profitability with a 21.5% profit margin vs -17.3%. PETS appears more attractively valued with a PEG of 2.32. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

PETS

Hold

43

out of 100

Grade: D

Growth: 4.7Profit: 2.0Value: 6.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.29
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$265.58

$125.01 premium

UndervaluedFair: $140.57Overvalued
PETSUndervalued (+70.8%)

Margin of Safety

+70.8%

Fair Value

$10.16

Current Price

$1.65

$8.51 discount

UndervaluedFair: $10.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$640.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

PETS3 strengths · Avg: 9.3/10
EPS GrowthGrowth
266.7%10/10

Earnings expanding 266.7% YoY

Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

PETS4 concerns · Avg: 3.0/10
PEG RatioValuation
2.324/10

Expensive relative to growth rate

Market CapQuality
$39.24M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-100.6%2/10

ROE of -100.6% — 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 21.5% and operating margin at 29.2%.

Bull Case : PETS

The strongest argument for PETS centers on EPS Growth, Debt/Equity, Price/Book.

Bear Case : JNJ

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

Bear Case : PETS

The primary concerns for PETS are PEG Ratio, Market Cap, Piotroski F-Score.

Key Dynamics to Monitor

JNJ profiles as a mature stock while PETS is a turnaround play — different risk/reward profiles.

PETS carries more volatility with a beta of 0.79 — expect wider price swings.

JNJ is growing revenue faster at 6.6% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 43/100), backed by strong 21.5% margins. PETS offers better value entry with a 70.8% 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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PetMed Express Inc

HEALTHCARE · PHARMACEUTICAL RETAILERS · USA

PetMed Express, Inc., doing business as 1-800-PetMeds, is a pet pharmacy in the United States. The company is headquartered in Delray Beach, Florida.

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