Johnson & Johnson (JNJ)vsAT&T Inc. (T)
JNJ
Johnson & Johnson
$221.32
-0.53%
HEALTHCARE · Cap: $535.63B
T
AT&T Inc.
$25.16
-0.40%
COMMUNICATION SERVICES · Cap: $175.52B
Smart Verdict
WallStSmart Research — data-driven comparison
AT&T Inc. generates 31% more annual revenue ($126.53B vs $96.36B). JNJ leads profitability with a 21.8% profit margin vs 16.9%. T appears more attractively valued with a PEG of 1.81. T earns a higher WallStSmart Score of 64/100 (C+).
JNJ
Buy59
out of 100
Grade: C
T
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.5%
Fair Value
$160.72
Current Price
$221.32
$60.60 premium
Margin of Safety
+21.5%
Fair Value
$32.17
Current Price
$25.16
$7.01 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Attractively priced relative to earnings
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 22.7%
Generating 2.7B in free cash flow
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Expensive relative to growth rate
2.9% revenue growth
Earnings declined 11.3%
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 21.8% and operating margin at 27.4%.
Bull Case : T
The strongest argument for T centers on P/E Ratio, Market Cap, Price/Book. Profitability is solid with margins at 16.9% and operating margin at 22.7%.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : T
The primary concerns for T are PEG Ratio, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
JNJ profiles as a mature stock while T is a value play — different risk/reward profiles.
T carries more volatility with a beta of 0.42 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
T generates stronger free cash flow (2.7B), providing more financial flexibility.
Bottom Line
T scores higher overall (64/100 vs 59/100), backed by strong 16.9% 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.
Visit Website →AT&T Inc.
COMMUNICATION SERVICES · TELECOM SERVICES · USA
AT&T Inc. is an American multinational conglomerate holding company, Delaware-registered but headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world largest telecommunications company, and the second largest provider of mobile telephone services.
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