WallStSmart

Johnson & Johnson (JNJ)vsTactile Systems Technology Inc (TCMD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 27951% more annual revenue ($96.36B vs $343.52M). JNJ leads profitability with a 21.8% profit margin vs 5.9%. JNJ appears more attractively valued with a PEG of 2.91. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

TCMD

Buy

52

out of 100

Grade: C-

Growth: 8.0Profit: 4.5Value: 3.7Quality: 9.0
Piotroski: 5/9Altman Z: 4.77
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-71.4%)

Margin of Safety

-71.4%

Fair Value

$135.80

Current Price

$232.77

$96.97 premium

UndervaluedFair: $135.80Overvalued

Intrinsic value data unavailable for TCMD.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$536.54B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
25.9%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

TCMD4 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7710/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
22.8%8/10

Revenue surging 22.8% year-over-year

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.912/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

TCMD4 concerns · Avg: 3.0/10
P/E RatioValuation
30.2x4/10

Premium valuation, high expectations priced in

Market CapQuality
$592.67M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
5.9%3/10

5.9% margin — thin

PEG RatioValuation
17.792/10

Expensive relative to growth rate

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 21.8% and operating margin at 27.4%.

Bull Case : TCMD

The strongest argument for TCMD centers on Debt/Equity, Altman Z-Score, Price/Book. Revenue growth of 22.8% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : TCMD

The primary concerns for TCMD are P/E Ratio, Market Cap, Profit Margin.

Key Dynamics to Monitor

JNJ profiles as a mature stock while TCMD is a growth play — different risk/reward profiles.

TCMD carries more volatility with a beta of 0.83 — expect wider price swings.

TCMD is growing revenue faster at 22.8% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 52/100), backed by strong 21.8% 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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Tactile Systems Technology Inc

HEALTHCARE · MEDICAL DEVICES · USA

Tactile Systems Technology, Inc., a medical technology company, is dedicated to the development and supply of medical devices for chronic diseases in the United States. The company is headquartered in Minneapolis, Minnesota.

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