WallStSmart

Johnson & Johnson (JNJ)vsWaystar Holding Corp. Common Stock (WAY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 8666% more annual revenue ($96.36B vs $1.10B). JNJ leads profitability with a 21.8% profit margin vs 10.2%. JNJ trades at a lower P/E of 26.4x. 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

WAY

Buy

51

out of 100

Grade: C-

Growth: 6.0Profit: 6.0Value: 5.0Quality: 6.0
Piotroski: 2/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-42.0%)

Margin of Safety

-42.0%

Fair Value

$160.13

Current Price

$227.35

$67.22 premium

UndervaluedFair: $160.13Overvalued
WAYUndervalued (+3.5%)

Margin of Safety

+3.5%

Fair Value

$24.59

Current Price

$25.27

$0.68 discount

UndervaluedFair: $24.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.64B10/10

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

WAY4 strengths · Avg: 9.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Operating MarginProfitability
23.6%8/10

Strong operational efficiency at 23.6%

Revenue GrowthGrowth
24.3%8/10

Revenue surging 24.3% year-over-year

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.4x4/10

Moderate valuation

PEG RatioValuation
2.972/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

WAY4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Return on EquityProfitability
3.2%3/10

ROE of 3.2% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
41.7x2/10

Premium valuation, high expectations priced in

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 : WAY

The strongest argument for WAY centers on Price/Book, Debt/Equity, Operating Margin. Revenue growth of 24.3% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : WAY

The primary concerns for WAY are Altman Z-Score, Return on Equity, Piotroski F-Score. A P/E of 41.7x leaves little room for execution misses.

Key Dynamics to Monitor

JNJ profiles as a mature stock while WAY is a growth play — different risk/reward profiles.

WAY is growing revenue faster at 24.3% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

JNJ scores higher overall (59/100 vs 51/100), 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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Waystar Holding Corp. Common Stock

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

Waystar Holding Corp. The company is headquartered in Lehi, Utah.

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