WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 159951% more annual revenue ($97.93B vs $61.19M). SPRO leads profitability with a 24.9% profit margin vs 21.5%. SPRO trades at a lower P/E of 5.8x. JNJ earns a higher WallStSmart Score of 57/100 (C).

JNJ

Buy

57

out of 100

Grade: C

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

SPRO

Buy

55

out of 100

Grade: C

Growth: 6.0Profit: 7.0Value: 6.7Quality: 7.8
Piotroski: 5/9

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

SPRO6 strengths · Avg: 9.8/10
P/E RatioValuation
5.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

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

Profit MarginProfitability
24.9%9/10

Keeps 25 of every $100 in revenue as 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%

SPRO3 concerns · Avg: 2.0/10
Market CapQuality
$91.48M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-95.6%2/10

Revenue declined 95.6%

Operating MarginProfitability
-2922.0%1/10

Operating margin of -2922.0%

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 : SPRO

The strongest argument for SPRO centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 24.9% and operating margin at -2922.0%.

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, Revenue Growth, Operating Margin.

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 1.49 — 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

JNJ scores higher overall (57/100 vs 55/100), backed by strong 21.5% 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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