WallStSmart

Johnson & Johnson (JNJ)vsPTC Therapeutics Inc (PTCT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 9747% more annual revenue ($99.33B vs $1.01B). JNJ leads profitability with a 16.2% profit margin vs -3.8%. PTCT appears more attractively valued with a PEG of 0.81. JNJ earns a higher WallStSmart Score of 57/100 (C).

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

PTCT

Buy

52

out of 100

Grade: C-

Growth: 8.0Profit: 4.5Value: 6.0Quality: 7.0
Piotroski: 5/9Altman Z: 0.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-83.0%)

Margin of Safety

-83.0%

Fair Value

$144.12

Current Price

$271.17

$127.05 premium

UndervaluedFair: $144.12Overvalued

Intrinsic value data unavailable for PTCT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$615.87B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.1%8/10

Strong operational efficiency at 25.1%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

PTCT4 strengths · Avg: 9.5/10
Operating MarginProfitability
41.3%10/10

Strong operational efficiency at 41.3%

Revenue GrowthGrowth
101.5%10/10

Revenue surging 101.5% year-over-year

Debt/EquityHealth
-4.2110/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.818/10

Growing faster than its price suggests

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-96.0%2/10

Earnings declined 96.0%

PTCT4 concerns · Avg: 2.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-7740.0%2/10

ROE of -7740.0% — below average capital efficiency

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

Profit MarginProfitability
-3.8%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.1%.

Bull Case : PTCT

The strongest argument for PTCT centers on Operating Margin, Revenue Growth, Debt/Equity. Revenue growth of 101.5% demonstrates continued momentum. PEG of 0.81 suggests the stock is reasonably priced for its growth.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : PTCT

The primary concerns for PTCT are EPS Growth, Return on Equity, Altman Z-Score.

Key Dynamics to Monitor

JNJ profiles as a mature stock while PTCT is a hypergrowth play — different risk/reward profiles.

PTCT carries more volatility with a beta of 0.49 — expect wider price swings.

PTCT is growing revenue faster at 101.5% — sustainability is the question.

JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (57/100 vs 52/100), backed by strong 16.2% margins. 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.

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PTC Therapeutics Inc

HEALTHCARE · BIOTECHNOLOGY · USA

PTC Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of drugs for patients with rare disorders. The company is headquartered in South Plainfield, New Jersey.

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