Johnson & Johnson (JNJ)vsUnited Therapeutics Corporation (UTHR)
JNJ
Johnson & Johnson
$276.25
+1.43%
HEALTHCARE · Cap: $657.68B
UTHR
United Therapeutics Corporation
$565.72
-7.03%
HEALTHCARE · Cap: $25.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 3049% more annual revenue ($99.33B vs $3.15B). UTHR leads profitability with a 41.6% profit margin vs 16.2%. UTHR appears more attractively valued with a PEG of 2.22. UTHR earns a higher WallStSmart Score of 61/100 (C+).
JNJ
Buy54
out of 100
Grade: C-
UTHR
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.3%
Fair Value
$144.28
Current Price
$276.25
$131.97 premium
Margin of Safety
+0.7%
Fair Value
$479.17
Current Price
$565.72
$86.55 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.7%
Generating 6.4B in free cash flow
Keeps 42 of every $100 in revenue as profit
Strong operational efficiency at 42.2%
Safe zone — low bankruptcy risk
Every $100 of equity generates 20 in profit
Areas to Watch
Trading at 8.2x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
Revenue declined 1.9%
Comparative Analysis Report
WallStSmart ResearchBull 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 : UTHR
The strongest argument for UTHR centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 41.6% and operating margin at 42.2%.
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 : UTHR
The primary concerns for UTHR are PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
JNJ profiles as a mature stock while UTHR is a declining play — different risk/reward profiles.
UTHR carries more volatility with a beta of 0.49 — expect wider price swings.
JNJ is growing revenue faster at 5.9% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
UTHR scores higher overall (61/100 vs 54/100), backed by strong 41.6% 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.
Visit Website →United Therapeutics Corporation
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
United Therapeutics Corporation, a biotechnology company, is dedicated to the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company is headquartered in Silver Spring, Maryland.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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