WallStSmart

Johnson & Johnson (JNJ)vsTakeda Pharmaceutical Co Ltd ADR (TAK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Takeda Pharmaceutical Co Ltd ADR generates 4617% more annual revenue ($4.62T vs $97.93B). JNJ leads profitability with a 21.5% profit margin vs -3.5%. TAK appears more attractively valued with a PEG of 0.41. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

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

TAK

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 4.5Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: 1.20

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$640.02B10/10

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
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

TAK4 strengths · Avg: 9.8/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Free Cash FlowQuality
$73.81B10/10

Generating 73.8B in free cash flow

Market CapQuality
$60.84B9/10

Large-cap with strong market position

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

TAK4 concerns · Avg: 2.0/10
Return on EquityProfitability
2.4%3/10

ROE of 2.4% — below average capital efficiency

EPS GrowthGrowth
-9.8%2/10

Earnings declined 9.8%

Altman Z-ScoreHealth
1.202/10

Distress zone — elevated risk

Profit MarginProfitability
-3.5%1/10

Currently unprofitable

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 29.2%.

Bull Case : TAK

The strongest argument for TAK centers on PEG Ratio, Price/Book, Free Cash Flow. Revenue growth of 10.2% demonstrates continued momentum. PEG of 0.41 suggests the stock is reasonably priced for its growth.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : TAK

The primary concerns for TAK are Return on Equity, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

JNJ profiles as a mature stock while TAK is a turnaround play — different risk/reward profiles.

JNJ carries more volatility with a beta of 0.23 — expect wider price swings.

TAK is growing revenue faster at 10.2% — sustainability is the question.

TAK generates stronger free cash flow (73.8B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 53/100), 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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Takeda Pharmaceutical Co Ltd ADR

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Takeda Pharmaceutical Company Limited is engaged in the research, development, manufacture and marketing of pharmaceuticals, over-the-counter drugs and quasi-drug consumer products, and other health care products. The company is headquartered in Tokyo, Japan.

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