Johnson & Johnson (JNJ)vsWest Pharmaceutical Services Inc (WST)
JNJ
Johnson & Johnson
$276.25
+1.43%
HEALTHCARE · Cap: $657.68B
WST
West Pharmaceutical Services Inc
$392.48
-3.99%
HEALTHCARE · Cap: $28.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 2886% more annual revenue ($99.33B vs $3.33B). WST leads profitability with a 17.0% profit margin vs 16.2%. WST appears more attractively valued with a PEG of 3.07. WST earns a higher WallStSmart Score of 56/100 (C).
JNJ
Buy54
out of 100
Grade: C-
WST
Buy56
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
-43.3%
Fair Value
$171.84
Current Price
$392.48
$220.64 premium
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
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Strong operational efficiency at 22.5%
Areas to Watch
Trading at 8.2x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 9.2x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : WST
The strongest argument for WST centers on Altman Z-Score, Debt/Equity, Operating Margin. Profitability is solid with margins at 17.0% and operating margin at 22.5%. Revenue growth of 13.8% demonstrates continued momentum.
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 : WST
The primary concerns for WST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 51.0x leaves little room for execution misses.
Key Dynamics to Monitor
WST carries more volatility with a beta of 1.13 — expect wider price swings.
WST is growing revenue faster at 13.8% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WST scores higher overall (56/100 vs 54/100), backed by strong 17.0% margins and 13.8% 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 →West Pharmaceutical Services Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.
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