WallStSmart

Johnson & Johnson (JNJ)vsRedhill Biopharma Ltd (RDHL)

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Smart Verdict

WallStSmart Research — data-driven comparison

JNJ leads profitability with a 16.2% profit margin vs 0.0%. 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

RDHL

Avoid

34

out of 100

Grade: F

Growth: 5.3Profit: 3.0Value: 5.0Quality: 4.5
Piotroski: 3/9Altman Z: -24.37
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 RDHL.

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

RDHL3 strengths · Avg: 9.7/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
58.6%10/10

Revenue surging 58.6% year-over-year

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

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%

RDHL4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$3.75M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Operating MarginProfitability
0.0%3/10

Operating margin of 0.0%

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 : RDHL

The strongest argument for RDHL centers on Price/Book, Revenue Growth, Debt/Equity. Revenue growth of 58.6% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : RDHL

The primary concerns for RDHL are EPS Growth, Market Cap, Profit Margin.

Key Dynamics to Monitor

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

RDHL carries more volatility with a beta of 4.90 — expect wider price swings.

RDHL is growing revenue faster at 58.6% — 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 34/100), backed by strong 16.2% margins. Both earn "Buy" and "Avoid" 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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Redhill Biopharma Ltd

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focused on gastrointestinal and infectious diseases. The company is headquartered in Tel Aviv, Israel.

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