Johnson & Johnson (JNJ)vsSpero Therapeutics Inc (SPRO)
JNJ
Johnson & Johnson
$227.35
+1.10%
HEALTHCARE · Cap: $547.28B
SPRO
Spero Therapeutics Inc
$2.51
-0.79%
HEALTHCARE · Cap: $154.60M
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 144150% more annual revenue ($96.36B vs $66.80M). JNJ leads profitability with a 21.8% profit margin vs 12.8%. SPRO trades at a lower P/E of 17.8x. SPRO earns a higher WallStSmart Score of 63/100 (C+).
JNJ
Buy59
out of 100
Grade: C
SPRO
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-43.5%
Fair Value
$160.13
Current Price
$227.35
$67.22 premium
Margin of Safety
+51.9%
Fair Value
$4.95
Current Price
$2.51
$2.44 discount
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 76.0%
Revenue surging 174.5% year-over-year
Earnings expanding 75.3% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Smaller company, higher risk/reward
Negative free cash flow — burning cash
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 : SPRO
The strongest argument for SPRO centers on Operating Margin, Revenue Growth, EPS Growth. Revenue growth of 174.5% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : SPRO
The primary concerns for SPRO are Market Cap, Free Cash Flow.
Key Dynamics to Monitor
JNJ profiles as a mature stock while SPRO is a growth play — different risk/reward profiles.
SPRO carries more volatility with a beta of 1.45 — expect wider price swings.
SPRO is growing revenue faster at 174.5% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
SPRO scores higher overall (63/100 vs 59/100) and 174.5% revenue growth. 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 →Spero Therapeutics Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Spero Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on identifying, developing, and commercializing novel treatments for multidrug resistant (MDR) bacterial infections and rare diseases in the United States. The company is headquartered in Cambridge, Massachusetts.
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