WallStSmart

Johnson & Johnson (JNJ)vsSpero Therapeutics Inc (SPRO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 211265% more annual revenue ($99.33B vs $47.00M). JNJ leads profitability with a 16.2% profit margin vs 15.7%. SPRO trades at a lower P/E of 7.6x. 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

SPRO

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 7.5Value: 6.7Quality: 7.0
Piotroski: 5/9Altman Z: -3.36
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 SPRO.

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

SPRO5 strengths · Avg: 9.6/10
P/E RatioValuation
7.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

EPS GrowthGrowth
75.3%10/10

Earnings expanding 75.3% YoY

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

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%

SPRO4 concerns · Avg: 2.3/10
Market CapQuality
$62.31M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-95.6%2/10

Revenue declined 95.6%

Free Cash FlowQuality
$-5.36M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-3.362/10

Distress zone — elevated risk

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 : SPRO

The strongest argument for SPRO centers on P/E Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 15.7% and operating margin at 14.1%.

Bear Case : JNJ

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

Bear Case : SPRO

The primary concerns for SPRO are Market Cap, Revenue Growth, Free Cash Flow.

Key Dynamics to Monitor

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

SPRO carries more volatility with a beta of 1.50 — expect wider price swings.

JNJ is growing revenue faster at 5.9% — 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 54/100), 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.

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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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