Johnson & Johnson (JNJ)vsNeuronetics Inc (STIM)
JNJ
Johnson & Johnson
$266.88
+0.33%
HEALTHCARE · Cap: $640.02B
STIM
Neuronetics Inc
$2.80
-3.61%
HEALTHCARE · Cap: $207.26M
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 63041% more annual revenue ($97.93B vs $155.10M). JNJ leads profitability with a 21.5% profit margin vs -19.6%. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
STIM
Avoid27
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-88.9%
Fair Value
$140.57
Current Price
$266.88
$126.31 premium
Margin of Safety
+80.2%
Fair Value
$9.10
Current Price
$2.80
$6.30 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
No standout strengths identified
Areas to Watch
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 0.9%
Trading at 12.2x book value
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -131.6% — below average capital efficiency
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 21.5% and operating margin at 29.2%.
Bull Case : STIM
STIM has a balanced fundamental profile.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : STIM
The primary concerns for STIM are Price/Book, EPS Growth, Market Cap. Debt-to-equity of 4.85 is elevated, increasing financial risk.
Key Dynamics to Monitor
JNJ profiles as a mature stock while STIM is a turnaround play — different risk/reward profiles.
STIM carries more volatility with a beta of 1.17 — expect wider price swings.
STIM is growing revenue faster at 9.1% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 27/100), backed by strong 21.5% margins. STIM offers better value entry with a 80.2% margin of safety. Both earn "Buy" and "Avoid" 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 →Neuronetics Inc
HEALTHCARE · MEDICAL DEVICES · USA
Neuronetics, Inc., a commercial-stage medical technology company, designs, develops, and markets products for patients with psychiatric disorders in the United States and internationally. The company is headquartered in Malvern, Pennsylvania.
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