Johnson & Johnson (JNJ)vsVertex Pharmaceuticals Inc (VRTX)
JNJ
Johnson & Johnson
$259.24
+0.88%
HEALTHCARE · Cap: $614.36B
VRTX
Vertex Pharmaceuticals Inc
$496.07
+2.49%
HEALTHCARE · Cap: $121.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 678% more annual revenue ($97.93B vs $12.59B). VRTX leads profitability with a 35.0% profit margin vs 21.5%. VRTX appears more attractively valued with a PEG of 1.62. VRTX earns a higher WallStSmart Score of 64/100 (C+).
JNJ
Buy57
out of 100
Grade: C
VRTX
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.8%
Fair Value
$139.37
Current Price
$259.24
$119.87 premium
Margin of Safety
+50.1%
Fair Value
$971.64
Current Price
$496.07
$475.57 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 38.1%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Conservative balance sheet, low leverage
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 0.9%
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
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 21.5% and operating margin at 29.2%.
Bull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 35.0% and operating margin at 38.1%. Revenue growth of 12.5% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
VRTX carries more volatility with a beta of 0.30 — expect wider price swings.
VRTX is growing revenue faster at 12.5% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
VRTX scores higher overall (64/100 vs 57/100), backed by strong 35.0% margins and 12.5% 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 →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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