Johnson & Johnson (JNJ)vsWaters Corporation (WAT)
JNJ
Johnson & Johnson
$275.19
+1.53%
HEALTHCARE · Cap: $615.87B
WAT
Waters Corporation
$476.88
+1.78%
HEALTHCARE · Cap: $42.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 2039% more annual revenue ($99.33B vs $4.64B). JNJ leads profitability with a 16.2% profit margin vs 3.6%. WAT appears more attractively valued with a PEG of 1.57. JNJ earns a higher WallStSmart Score of 57/100 (C).
JNJ
Buy57
out of 100
Grade: C
WAT
Hold45
out of 100
Grade: D+
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
-44.6%
Fair Value
$227.71
Current Price
$476.88
$249.17 premium
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
Revenue surging 113.4% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
Expensive relative to growth rate
ROE of 1.1% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
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 : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 113.4% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Return on Equity, Profit Margin. A P/E of 110.6x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
JNJ profiles as a mature stock while WAT is a hypergrowth play — different risk/reward profiles.
WAT carries more volatility with a beta of 1.15 — expect wider price swings.
WAT is growing revenue faster at 113.4% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 45/100), backed by strong 16.2% margins. Both earn "Buy" and "Hold" 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 →Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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