WallStSmart

Johnson & Johnson (JNJ)vsPfizer Inc (PFE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 54% more annual revenue ($96.36B vs $62.58B). JNJ leads profitability with a 21.8% profit margin vs 12.4%. JNJ appears more attractively valued with a PEG of 2.96. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

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

PFE

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 6.5Value: 5.3Quality: 4.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-41.6%)

Margin of Safety

-41.6%

Fair Value

$160.43

Current Price

$227.19

$66.76 premium

UndervaluedFair: $160.43Overvalued
PFEUndervalued (+29.1%)

Margin of Safety

+29.1%

Fair Value

$37.15

Current Price

$26.33

$10.82 discount

UndervaluedFair: $37.15Overvalued

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

PFE4 strengths · Avg: 8.3/10
Market CapQuality
$149.38B9/10

Large-cap with strong market position

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.9%8/10

Strong operational efficiency at 23.9%

Free Cash FlowQuality
$4.50B8/10

Generating 4.5B in free cash flow

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%

PFE4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
13.772/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.2%2/10

Revenue declined 1.2%

EPS GrowthGrowth
-21.3%2/10

Earnings declined 21.3%

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 : PFE

The strongest argument for PFE centers on Market Cap, Price/Book, Operating Margin.

Bear Case : JNJ

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

Bear Case : PFE

The primary concerns for PFE are Piotroski F-Score, PEG Ratio, Revenue Growth.

Key Dynamics to Monitor

JNJ profiles as a mature stock while PFE is a declining play — different risk/reward profiles.

PFE carries more volatility with a beta of 0.39 — expect wider price swings.

JNJ is growing revenue faster at 9.9% — sustainability is the question.

PFE generates stronger free cash flow (4.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 49/100), backed by strong 21.8% margins. PFE offers better value entry with a 29.1% 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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Pfizer Inc

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Pfizer Inc. is an American multinational pharmaceutical and biotechnology corporation headquartered on 42nd Street in Manhattan, New York City. The name of the company commemorates its co-founder, Charles Pfizer (1824-1906). Pfizer develops and produces medicines and vaccines for immunology, oncology, cardiology, endocrinology, and neurology. The company has several blockbuster drugs or products that each generate more than 1 billion USD in annual revenues.

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