WallStSmart

Johnson & Johnson (JNJ)vsRhythm Pharmaceuticals Inc (RYTM)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 41304% more annual revenue ($99.33B vs $239.92M). JNJ leads profitability with a 16.2% profit margin vs -85.6%. JNJ earns a higher WallStSmart Score of 57/100 (C).

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

RYTM

Avoid

30

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.0Quality: 7.0
Piotroski: 5/9Altman Z: -3.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-83.0%)

Margin of Safety

-83.0%

Fair Value

$144.12

Current Price

$271.17

$127.05 premium

UndervaluedFair: $144.12Overvalued

Intrinsic value data unavailable for RYTM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$615.87B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.1%8/10

Strong operational efficiency at 25.1%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

RYTM2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
46.9%10/10

Revenue surging 46.9% year-over-year

Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-96.0%2/10

Earnings declined 96.0%

RYTM4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
61.3x2/10

Trading at 61.3x book value

Return on EquityProfitability
-164.9%2/10

ROE of -164.9% — below average capital efficiency

Free Cash FlowQuality
$-53.34M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull 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 : RYTM

The strongest argument for RYTM centers on Revenue Growth, Debt/Equity. Revenue growth of 46.9% demonstrates continued momentum.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : RYTM

The primary concerns for RYTM are EPS Growth, Price/Book, Return on Equity.

Key Dynamics to Monitor

JNJ profiles as a mature stock while RYTM is a hypergrowth play — different risk/reward profiles.

RYTM carries more volatility with a beta of 2.01 — expect wider price swings.

RYTM is growing revenue faster at 46.9% — 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 30/100), backed by strong 16.2% margins. Both earn "Buy" and "Avoid" 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 →

Rhythm Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of therapies for the treatment of rare genetic diseases of obesity. The company is headquartered in Boston, Massachusetts.

Visit Website →

Want to dig deeper into these stocks?