WallStSmart

Johnson & Johnson (JNJ)vsXOMA Corp (XOMA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 184682% more annual revenue ($96.36B vs $52.15M). XOMA leads profitability with a 60.8% profit margin vs 21.8%. JNJ trades at a lower P/E of 26.3x. 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

XOMA

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: -6.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$229.85

$69.72 premium

UndervaluedFair: $160.13Overvalued
XOMAUndervalued (+2.2%)

Margin of Safety

+2.2%

Fair Value

$23.79

Current Price

$40.94

$17.15 discount

UndervaluedFair: $23.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

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

XOMA3 strengths · Avg: 10.0/10
Return on EquityProfitability
34.1%10/10

Every $100 of equity generates 34 in profit

Profit MarginProfitability
60.8%10/10

Keeps 61 of every $100 in revenue as profit

Revenue GrowthGrowth
57.9%10/10

Revenue surging 57.9% year-over-year

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

XOMA4 concerns · Avg: 3.0/10
P/E RatioValuation
28.1x4/10

Moderate valuation

Market CapQuality
$497.18M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.223/10

Elevated debt levels

EPS GrowthGrowth
-47.8%2/10

Earnings declined 47.8%

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 : XOMA

The strongest argument for XOMA centers on Return on Equity, Profit Margin, Revenue Growth. Profitability is solid with margins at 60.8% and operating margin at 15.9%. Revenue growth of 57.9% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : XOMA

The primary concerns for XOMA are P/E Ratio, Market Cap, Debt/Equity.

Key Dynamics to Monitor

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

XOMA carries more volatility with a beta of 0.68 — expect wider price swings.

XOMA is growing revenue faster at 57.9% — sustainability is the question.

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

Bottom Line

JNJ scores higher overall (59/100 vs 52/100), 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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XOMA Corp

HEALTHCARE · BIOTECHNOLOGY · USA

XOMA Corporation, a biotech royalty aggregator, discovers and develops therapeutic candidates in the United States, Europe, and Asia Pacific. The company is headquartered in Emeryville, California.

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