Johnson & Johnson (JNJ)vsRoyalty Pharma Plc (RPRX)
JNJ
Johnson & Johnson
$240.45
+0.85%
HEALTHCARE · Cap: $579.46B
RPRX
Royalty Pharma Plc
$46.35
-1.26%
HEALTHCARE · Cap: $26.81B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 3861% more annual revenue ($94.19B vs $2.38B). RPRX leads profitability with a 32.4% profit margin vs 28.5%. JNJ appears more attractively valued with a PEG of 1.68. JNJ earns a higher WallStSmart Score of 71/100 (B).
JNJ
Strong Buy71
out of 100
Grade: B
RPRX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.5%
Fair Value
$516.67
Current Price
$240.45
$276.22 discount
Margin of Safety
-17.3%
Fair Value
$37.74
Current Price
$46.35
$8.61 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 57.7%
Areas to Watch
Expensive relative to growth rate
Moderate valuation
4.8% revenue growth
Elevated debt levels
Weak financial health signals
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 28.5% and operating margin at 24.0%.
Bull Case : RPRX
The strongest argument for RPRX centers on Profit Margin, Operating Margin. Profitability is solid with margins at 32.4% and operating margin at 57.7%.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Bear Case : RPRX
The primary concerns for RPRX are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
JNJ profiles as a mature stock while RPRX is a value play — different risk/reward profiles.
RPRX carries more volatility with a beta of 0.42 — 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 57/100), 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.
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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