WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Takeda Pharmaceutical Co Ltd ADR generates 4550% more annual revenue ($4.62T vs $99.33B). JNJ leads profitability with a 16.2% profit margin vs -3.5%. TAK appears more attractively valued with a PEG of 0.40. JNJ earns a higher WallStSmart Score of 54/100 (C-).

JNJ

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 2.7Quality: 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
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-89.3%)

Margin of Safety

-89.3%

Fair Value

$144.28

Current Price

$276.25

$131.97 premium

UndervaluedFair: $144.28Overvalued

Intrinsic value data unavailable for TAK.

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

TAK4 strengths · Avg: 9.8/10
PEG RatioValuation
0.4010/10

Growing faster than its price suggests

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Free Cash FlowQuality
$212.65B10/10

Generating 212.6B in free cash flow

Market CapQuality
$64.66B9/10

Large-cap with strong market position

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
Price/BookValuation
8.2x4/10

Trading at 8.2x 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

TAK4 concerns · Avg: 2.0/10
Return on EquityProfitability
5.2%3/10

ROE of 5.2% — 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, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.7%.

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 0.40 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 : 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 0.21 — expect wider price swings.

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

TAK generates stronger free cash flow (212.6B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (54/100 vs 53/100), backed by strong 16.2% 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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