WallStSmart

Johnson & Johnson (JNJ)vsTrane Technologies plc (TT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 346% more annual revenue ($96.36B vs $21.60B). JNJ leads profitability with a 21.8% profit margin vs 13.4%. TT appears more attractively valued with a PEG of 2.39. 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

TT

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 8.0Value: 4.3Quality: 5.5
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-40.3%)

Margin of Safety

-40.3%

Fair Value

$160.72

Current Price

$224.62

$63.90 premium

UndervaluedFair: $160.72Overvalued

Intrinsic value data unavailable for TT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$546.90B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%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

TT2 strengths · Avg: 9.5/10
Return on EquityProfitability
36.6%10/10

Every $100 of equity generates 37 in profit

Market CapQuality
$107.57B9/10

Large-cap with strong market position

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.952/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

TT4 concerns · Avg: 3.5/10
PEG RatioValuation
2.394/10

Expensive relative to growth rate

P/E RatioValuation
37.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.6x4/10

Trading at 12.6x book value

EPS GrowthGrowth
-2.1%2/10

Earnings declined 2.1%

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 : TT

The strongest argument for TT centers on Return on Equity, Market Cap.

Bear Case : JNJ

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

Bear Case : TT

The primary concerns for TT are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

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

TT carries more volatility with a beta of 1.21 — expect wider price swings.

JNJ is growing revenue faster at 9.9% — 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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Trane Technologies plc

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Trane Technologies plc is an American Irish domiciled diversified industrial manufacturing company. It is headquartered near Dublin, Ireland.

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