WallStSmart

Johnson & Johnson (JNJ)vsSTERIS plc (STE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1553% more annual revenue ($96.36B vs $5.83B). JNJ leads profitability with a 21.8% profit margin vs 12.1%. STE appears more attractively valued with a PEG of 1.68. STE earns a higher WallStSmart Score of 60/100 (C).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

STE

Buy

60

out of 100

Grade: C

Growth: 6.0Profit: 6.5Value: 4.0Quality: 7.3
Piotroski: 6/9Altman Z: 2.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$227.35

$67.22 premium

UndervaluedFair: $160.13Overvalued
STESignificantly Overvalued (-25.7%)

Margin of Safety

-25.7%

Fair Value

$193.71

Current Price

$212.65

$18.94 premium

UndervaluedFair: $193.71Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

STE1 strengths · Avg: 8.0/10
Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

STE2 concerns · Avg: 4.0/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

P/E RatioValuation
29.7x4/10

Moderate valuation

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 21.8% and operating margin at 27.4%.

Bull Case : STE

The strongest argument for STE centers on Price/Book.

Bear Case : JNJ

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

Bear Case : STE

The primary concerns for STE are PEG Ratio, P/E Ratio.

Key Dynamics to Monitor

JNJ profiles as a mature stock while STE is a value play — different risk/reward profiles.

STE carries more volatility with a beta of 1.07 — expect wider price swings.

JNJ is growing revenue faster at 9.9% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

STE scores higher overall (60/100 vs 59/100). 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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STERIS plc

HEALTHCARE · MEDICAL DEVICES · USA

Steris Corporation is an American Irish-domiciled medical equipment company specializing in sterilization and surgical products for the US healthcare system.

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