WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Takeda Pharmaceutical Co Ltd ADR generates 4640% more annual revenue ($4.46T vs $94.19B). JNJ leads profitability with a 28.5% profit margin vs 2.5%. TAK appears more attractively valued with a PEG of 0.39. JNJ earns a higher WallStSmart Score of 71/100 (B).

JNJ

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 9.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.62

TAK

Buy

60

out of 100

Grade: C

Growth: 6.7Profit: 6.0Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJUndervalued (+54.5%)

Margin of Safety

+54.5%

Fair Value

$516.67

Current Price

$235.27

$281.40 discount

UndervaluedFair: $516.67Overvalued
TAKSignificantly Overvalued (-77.5%)

Margin of Safety

-77.5%

Fair Value

$10.30

Current Price

$18.02

$7.72 premium

UndervaluedFair: $10.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ6 strengths · Avg: 8.8/10
Market CapQuality
$567.22B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.0%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
28.5%9/10

Keeps 29 of every $100 in revenue as profit

Operating MarginProfitability
24.0%8/10

Strong operational efficiency at 24.0%

EPS GrowthGrowth
48.6%8/10

Earnings expanding 48.6% YoY

Free Cash FlowQuality
$5.47B8/10

Generating 5.5B in free cash flow

TAK6 strengths · Avg: 9.8/10
PEG RatioValuation
0.3910/10

Growing faster than its price suggests

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Return on EquityProfitability
150.0%10/10

Every $100 of equity generates 150 in profit

EPS GrowthGrowth
330.2%10/10

Earnings expanding 330.2% YoY

Free Cash FlowQuality
$317.47B10/10

Generating 317.5B in free cash flow

Market CapQuality
$56.99B9/10

Large-cap with strong market position

Areas to Watch

JNJ1 concerns · Avg: 4.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

TAK3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Profit MarginProfitability
2.5%3/10

2.5% margin — thin

P/E RatioValuation
82.0x2/10

Premium valuation, high expectations priced in

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 28.5% and operating margin at 24.0%.

Bull Case : TAK

The strongest argument for TAK centers on PEG Ratio, Price/Book, Return on Equity. PEG of 0.39 suggests the stock is reasonably priced for its growth.

Bear Case : JNJ

The primary concerns for JNJ are PEG Ratio.

Bear Case : TAK

The primary concerns for TAK are Revenue Growth, Profit Margin, P/E Ratio. A P/E of 82.0x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

JNJ carries more volatility with a beta of 0.33 — expect wider price swings.

JNJ is growing revenue faster at 9.1% — sustainability is the question.

TAK generates stronger free cash flow (317.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (71/100 vs 60/100), backed by strong 28.5% margins. Both earn "Strong 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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