Johnson & Johnson (JNJ)vsTransMedics Group Inc (TMDX)
JNJ
Johnson & Johnson
$254.66
+3.99%
HEALTHCARE · Cap: $613.02B
TMDX
TransMedics Group Inc
$68.44
-2.72%
HEALTHCARE · Cap: $2.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 15054% more annual revenue ($96.36B vs $635.89M). TMDX leads profitability with a 27.0% profit margin vs 21.8%. TMDX trades at a lower P/E of 16.9x. JNJ earns a higher WallStSmart Score of 57/100 (C).
JNJ
Buy57
out of 100
Grade: C
TMDX
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-87.1%
Fair Value
$136.12
Current Price
$254.66
$118.54 premium
Margin of Safety
+53.7%
Fair Value
$287.77
Current Price
$68.44
$219.33 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Every $100 of equity generates 35 in profit
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Revenue surging 21.2% year-over-year
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Distress zone — elevated risk
Elevated debt levels
Earnings declined 71.5%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : TMDX
The strongest argument for TMDX centers on Return on Equity, Profit Margin, P/E Ratio. Profitability is solid with margins at 27.0% and operating margin at 7.7%. Revenue growth of 21.2% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : TMDX
The primary concerns for TMDX are Altman Z-Score, Debt/Equity, EPS Growth. Debt-to-equity of 1.75 is elevated, increasing financial risk.
Key Dynamics to Monitor
JNJ profiles as a mature stock while TMDX is a growth play — different risk/reward profiles.
TMDX carries more volatility with a beta of 1.88 — expect wider price swings.
TMDX is growing revenue faster at 21.2% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 50/100), backed by strong 21.8% margins. TMDX offers better value entry with a 53.7% margin of safety. 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.
Visit Website →TransMedics Group Inc
HEALTHCARE · MEDICAL DEVICES · USA
TransMedics Group, Inc., a commercial-stage medical technology company, is dedicated to transforming organ transplant therapy for patients with end-stage organ failure in the United States and internationally. The company is headquartered in Andover, Massachusetts.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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