WallStSmart

Johnson & Johnson (JNJ)vsSolventum Corp. (SOLV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1085% more annual revenue ($97.93B vs $8.26B). JNJ leads profitability with a 21.5% profit margin vs 17.3%. SOLV appears more attractively valued with a PEG of 1.22. SOLV earns a higher WallStSmart Score of 60/100 (C).

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

SOLV

Buy

60

out of 100

Grade: C

Growth: 2.7Profit: 7.0Value: 7.0Quality: 5.0
Piotroski: 5/9Altman Z: 1.62

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$615.36B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
28.6%8/10

Strong operational efficiency at 28.6%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

SOLV2 strengths · Avg: 9.5/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
28.8%9/10

Every $100 of equity generates 29 in profit

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
29.1x4/10

Moderate valuation

PEG RatioValuation
4.142/10

Expensive relative to growth rate

EPS GrowthGrowth
-1.0%2/10

Earnings declined 1.0%

SOLV4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.624/10

Distress zone — elevated risk

Debt/EquityHealth
1.023/10

Elevated debt levels

Revenue GrowthGrowth
-3.0%2/10

Revenue declined 3.0%

EPS GrowthGrowth
-91.0%2/10

Earnings declined 91.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.5% and operating margin at 28.6%.

Bull Case : SOLV

The strongest argument for SOLV centers on P/E Ratio, Return on Equity. Profitability is solid with margins at 17.3% and operating margin at 5.6%. PEG of 1.22 suggests the stock is reasonably priced for its growth.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Bear Case : SOLV

The primary concerns for SOLV are Altman Z-Score, Debt/Equity, Revenue Growth.

Key Dynamics to Monitor

JNJ profiles as a mature stock while SOLV is a declining play — different risk/reward profiles.

SOLV carries more volatility with a beta of 0.72 — expect wider price swings.

JNJ is growing revenue faster at 6.6% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

SOLV scores higher overall (60/100 vs 57/100), backed by strong 17.3% 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.

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Solventum Corp.

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. The company is headquartered in Saint Paul, Minnesota.

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