WallStSmart

Johnson & Johnson (JNJ)vsStryker Corporation (SYK)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 278% more annual revenue ($99.33B vs $26.30B). JNJ leads profitability with a 16.2% profit margin vs 13.8%. SYK appears more attractively valued with a PEG of 1.37. SYK earns a higher WallStSmart Score of 57/100 (C).

JNJ

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

SYK

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.0Quality: 6.5
Piotroski: 2/9Altman Z: 2.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for JNJ.

SYKSignificantly Overvalued (-38.2%)

Margin of Safety

-38.2%

Fair Value

$235.85

Current Price

$318.79

$82.94 premium

UndervaluedFair: $235.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$657.68B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

SYK3 strengths · Avg: 8.3/10
Market CapQuality
$111.11B9/10

Large-cap with strong market position

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Free Cash FlowQuality
$1.22B8/10

Generating 1.2B in free cash flow

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
Price/BookValuation
8.4x4/10

Trading at 8.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.072/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

SYK3 concerns · Avg: 3.0/10
P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-11.7%2/10

Earnings declined 11.7%

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 25.7%.

Bull Case : SYK

The strongest argument for SYK centers on Market Cap, Operating Margin, Free Cash Flow. PEG of 1.37 suggests the stock is reasonably priced for its growth.

Bear Case : JNJ

The primary concerns for JNJ are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.

Bear Case : SYK

The primary concerns for SYK are P/E Ratio, Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

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

SYK carries more volatility with a beta of 0.78 — expect wider price swings.

SYK is growing revenue faster at 7.6% — sustainability is the question.

JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

SYK scores higher overall (57/100 vs 54/100). 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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Stryker Corporation

HEALTHCARE · MEDICAL DEVICES · USA

Stryker Corporation is an American multinational medical technologies corporation based in Kalamazoo, Michigan. Stryker's products include implants used in joint replacement and trauma surgeries; surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling and emergency medical equipment; neurosurgical, neurovascular and spinal devices; as well as other medical device products used in a variety of medical specialties.

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