Johnson & Johnson (JNJ)vsResMed Inc (RMD)
JNJ
Johnson & Johnson
$276.25
+1.43%
HEALTHCARE · Cap: $657.68B
RMD
ResMed Inc
$235.30
-1.68%
HEALTHCARE · Cap: $35.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 1657% more annual revenue ($99.33B vs $5.65B). RMD leads profitability with a 27.0% profit margin vs 16.2%. RMD appears more attractively valued with a PEG of 1.34. RMD earns a higher WallStSmart Score of 65/100 (C+).
JNJ
Buy54
out of 100
Grade: C-
RMD
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.3%
Fair Value
$144.28
Current Price
$276.25
$131.97 premium
Margin of Safety
-21.2%
Fair Value
$214.26
Current Price
$235.30
$21.04 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.7%
Generating 6.4B in free cash flow
Strong operational efficiency at 30.9%
Safe zone — low bankruptcy risk
Every $100 of equity generates 23 in profit
Keeps 27 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Generating 1.6B in free cash flow
Areas to Watch
Trading at 8.2x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.4% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull 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 25.7%.
Bull Case : RMD
The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.0% and operating margin at 30.9%. PEG of 1.34 suggests the stock is reasonably priced for its growth.
Bear Case : JNJ
The primary concerns for JNJ are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.
Bear Case : RMD
The primary concerns for RMD are EPS Growth.
Key Dynamics to Monitor
RMD carries more volatility with a beta of 0.75 — expect wider price swings.
RMD is growing revenue faster at 8.6% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RMD scores higher overall (65/100 vs 54/100), backed by strong 27.0% 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.
Visit Website →ResMed Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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