WallStSmart

Johnson & Johnson (JNJ)vsTarsus Pharmaceuticals Inc (TARS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 18202% more annual revenue ($97.93B vs $535.08M). JNJ leads profitability with a 21.5% profit margin vs -9.0%. JNJ earns a higher WallStSmart Score of 57/100 (C).

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

TARS

Avoid

32

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.0Quality: 7.5
Piotroski: 4/9Altman Z: 1.18

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$615.36B10/10

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
28.6%8/10

Strong operational efficiency at 28.6%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

TARS2 strengths · Avg: 9.5/10
Revenue GrowthGrowth
106.9%10/10

Revenue surging 106.9% year-over-year

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
29.1x4/10

Moderate valuation

PEG RatioValuation
4.142/10

Expensive relative to growth rate

EPS GrowthGrowth
-1.0%2/10

Earnings declined 1.0%

TARS4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-13.8%2/10

ROE of -13.8% — below average capital efficiency

Free Cash FlowQuality
$-30.47M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.182/10

Distress zone — elevated risk

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 28.6%.

Bull Case : TARS

The strongest argument for TARS centers on Revenue Growth, Debt/Equity. Revenue growth of 106.9% demonstrates continued momentum.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Bear Case : TARS

The primary concerns for TARS are EPS Growth, Return on Equity, Free Cash Flow.

Key Dynamics to Monitor

JNJ profiles as a mature stock while TARS is a hypergrowth play — different risk/reward profiles.

TARS carries more volatility with a beta of 0.50 — expect wider price swings.

TARS is growing revenue faster at 106.9% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (57/100 vs 32/100), backed by strong 21.5% margins. Both earn "Buy" and "Avoid" 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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Tarsus Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Tarsus Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of new therapeutic candidates for ophthalmic conditions. The company is headquartered in Irvine, California.

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