Johnson & Johnson (JNJ)vsZimmer Biomet Holdings Inc (ZBH)
JNJ
Johnson & Johnson
$271.17
+0.86%
HEALTHCARE · Cap: $615.87B
ZBH
Zimmer Biomet Holdings Inc
$96.39
+0.34%
HEALTHCARE · Cap: $18.00B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 1067% more annual revenue ($99.33B vs $8.51B). JNJ leads profitability with a 16.2% profit margin vs 9.5%. ZBH appears more attractively valued with a PEG of 0.57. ZBH earns a higher WallStSmart Score of 67/100 (B-).
JNJ
Buy57
out of 100
Grade: C
ZBH
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$271.17
$127.05 premium
Margin of Safety
+21.2%
Fair Value
$121.27
Current Price
$96.39
$24.88 discount
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
Reasonable price relative to book value
Growing faster than its price suggests
Earnings expanding 33.8% YoY
Areas to Watch
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
4.8% revenue growth
ROE of 6.4% — below average capital efficiency
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 : ZBH
The strongest argument for ZBH centers on Price/Book, PEG Ratio, EPS Growth. PEG of 0.57 suggests the stock is reasonably priced for its growth.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : ZBH
The primary concerns for ZBH are Revenue Growth, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
JNJ profiles as a mature stock while ZBH is a value play — different risk/reward profiles.
ZBH carries more volatility with a beta of 0.48 — expect wider price swings.
JNJ is growing revenue faster at 5.9% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
ZBH scores higher overall (67/100 vs 57/100). Both earn "Strong 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 →Zimmer Biomet Holdings Inc
HEALTHCARE · MEDICAL DEVICES · USA
Zimmer Biomet is a publicly traded medical device company. The company is headquartered in Warsaw, Indiana, where it is part of the medical devices business cluster.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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