WallStSmart

Johnson & Johnson (JNJ)vsRegeneron Pharmaceuticals Inc (REGN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 557% more annual revenue ($94.19B vs $14.34B). REGN leads profitability with a 31.4% profit margin vs 28.5%. REGN appears more attractively valued with a PEG of 1.56. JNJ earns a higher WallStSmart Score of 71/100 (B).

JNJ

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 9.0Value: 6.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.62

REGN

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 7.5Value: 4.7Quality: 7.3
Piotroski: 3/9Altman Z: 4.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJUndervalued (+53.5%)

Margin of Safety

+53.5%

Fair Value

$516.67

Current Price

$240.45

$276.22 discount

UndervaluedFair: $516.67Overvalued
REGNSignificantly Overvalued (-161.7%)

Margin of Safety

-161.7%

Fair Value

$281.93

Current Price

$737.71

$455.78 premium

UndervaluedFair: $281.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ6 strengths · Avg: 8.8/10
Market CapQuality
$579.46B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.0%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
28.5%9/10

Keeps 29 of every $100 in revenue as profit

Operating MarginProfitability
24.0%8/10

Strong operational efficiency at 24.0%

EPS GrowthGrowth
48.6%8/10

Earnings expanding 48.6% YoY

Free Cash FlowQuality
$5.47B8/10

Generating 5.5B in free cash flow

REGN6 strengths · Avg: 8.8/10
Profit MarginProfitability
31.4%10/10

Keeps 31 of every $100 in revenue as profit

Altman Z-ScoreHealth
4.6810/10

Safe zone — low bankruptcy risk

Market CapQuality
$77.99B9/10

Large-cap with strong market position

P/E RatioValuation
17.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.1%8/10

Strong operational efficiency at 23.1%

Areas to Watch

JNJ1 concerns · Avg: 4.0/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

REGN4 concerns · Avg: 3.3/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.5%4/10

2.5% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-2.6%2/10

Earnings declined 2.6%

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 28.5% and operating margin at 24.0%.

Bull Case : REGN

The strongest argument for REGN centers on Profit Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 31.4% and operating margin at 23.1%.

Bear Case : JNJ

The primary concerns for JNJ are PEG Ratio.

Bear Case : REGN

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

Key Dynamics to Monitor

JNJ profiles as a mature stock while REGN is a value play — different risk/reward profiles.

REGN carries more volatility with a beta of 0.40 — expect wider price swings.

JNJ is growing revenue faster at 9.1% — sustainability is the question.

JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (71/100 vs 58/100), backed by strong 28.5% margins. Both earn "Strong 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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Regeneron Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Regeneron Pharmaceuticals, Inc. is an American biotechnology company headquartered in Westchester County, New York. Originally focused on neurotrophic factors and their regenerative capabilities, giving rise to its name, the company then branched out into the study of both cytokine and tyrosine kinase receptors.

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