Johnson & Johnson (JNJ)vsVeracyte Inc (VCYT)
JNJ
Johnson & Johnson
$275.19
+1.53%
HEALTHCARE · Cap: $615.87B
VCYT
Veracyte Inc
$50.31
+0.06%
HEALTHCARE · Cap: $4.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 17578% more annual revenue ($99.33B vs $561.90M). VCYT leads profitability with a 20.4% profit margin vs 16.2%. VCYT trades at a lower P/E of 35.9x. VCYT earns a higher WallStSmart Score of 60/100 (C+).
JNJ
Buy57
out of 100
Grade: C
VCYT
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$275.19
$131.07 premium
Margin of Safety
+58.3%
Fair Value
$86.20
Current Price
$50.31
$35.89 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Earnings expanding 288.9% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Keeps 20 of every $100 in revenue as profit
Reasonable price relative to book value
15.5% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
Premium valuation, high expectations priced in
ROE of 6.5% — below average capital efficiency
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 25.1%.
Bull Case : VCYT
The strongest argument for VCYT centers on EPS Growth, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 20.4% and operating margin at 15.3%. Revenue growth of 15.5% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : VCYT
The primary concerns for VCYT are P/E Ratio, Return on Equity.
Key Dynamics to Monitor
JNJ profiles as a mature stock while VCYT is a growth play — different risk/reward profiles.
VCYT carries more volatility with a beta of 1.95 — expect wider price swings.
VCYT is growing revenue faster at 15.5% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
VCYT scores higher overall (60/100 vs 57/100), backed by strong 20.4% margins and 15.5% revenue growth. 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 →Veracyte Inc
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Veracyte, Inc. is a genomic diagnostics company in the United States and internationally. The company is headquartered in South San Francisco, California.
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