Johnson & Johnson (JNJ)vsResMed Inc (RMD)
JNJ
Johnson & Johnson
$231.29
+0.82%
HEALTHCARE · Cap: $567.28B
RMD
ResMed Inc
$196.04
+0.89%
HEALTHCARE · Cap: $28.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 1640% more annual revenue ($96.36B vs $5.54B). RMD leads profitability with a 27.4% profit margin vs 21.8%. RMD appears more attractively valued with a PEG of 1.15. RMD earns a higher WallStSmart Score of 73/100 (B).
JNJ
Buy57
out of 100
Grade: C
RMD
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-67.8%
Fair Value
$136.12
Current Price
$231.29
$95.17 premium
Margin of Safety
-27.0%
Fair Value
$204.42
Current Price
$196.04
$8.38 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Strong operational efficiency at 35.3%
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
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull 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 : RMD
The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.4% and operating margin at 35.3%. Revenue growth of 10.8% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : RMD
No major red flags identified for RMD, but monitor valuation.
Key Dynamics to Monitor
RMD carries more volatility with a beta of 0.78 — expect wider price swings.
RMD is growing revenue faster at 10.8% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RMD scores higher overall (73/100 vs 57/100), backed by strong 27.4% margins and 10.8% revenue growth. 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.
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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