Johnson & Johnson (JNJ)vsRoyalty Pharma Plc (RPRX)
JNJ
Johnson & Johnson
$271.17
+0.86%
HEALTHCARE · Cap: $615.87B
RPRX
Royalty Pharma Plc
$64.82
-0.70%
HEALTHCARE · Cap: $37.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 3817% more annual revenue ($99.33B vs $2.54B). RPRX leads profitability with a 32.0% profit margin vs 16.2%. RPRX appears more attractively valued with a PEG of 1.51. JNJ earns a higher WallStSmart Score of 57/100 (C).
JNJ
Buy57
out of 100
Grade: C
RPRX
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$271.17
$127.05 premium
Margin of Safety
-73.5%
Fair Value
$37.37
Current Price
$64.82
$27.45 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Keeps 32 of every $100 in revenue as profit
16.5% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Elevated debt levels
Weak financial health signals
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 25.1%.
Bull Case : RPRX
The strongest argument for RPRX centers on Profit Margin, Revenue Growth. Profitability is solid with margins at 32.0% and operating margin at 19.8%. Revenue growth of 16.5% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : RPRX
The primary concerns for RPRX are PEG Ratio, P/E Ratio, Debt/Equity.
Key Dynamics to Monitor
JNJ profiles as a mature stock while RPRX is a growth play — different risk/reward profiles.
RPRX carries more volatility with a beta of 0.41 — expect wider price swings.
RPRX is growing revenue faster at 16.5% — 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 55/100), 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.
Visit Website →Royalty Pharma Plc
HEALTHCARE · BIOTECHNOLOGY · USA
Royalty Pharma plc is a buyer of biopharmaceutical royalties and funder of innovations in the biopharmaceutical industry in the United States. The company is headquartered in New York, New York.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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