Johnson & Johnson (JNJ)vsZoetis Inc (ZTS)
JNJ
Johnson & Johnson
$235.27
-0.06%
HEALTHCARE · Cap: $567.22B
ZTS
Zoetis Inc
$115.93
+0.61%
HEALTHCARE · Cap: $50.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 895% more annual revenue ($94.19B vs $9.47B). JNJ leads profitability with a 28.5% profit margin vs 28.2%. JNJ appears more attractively valued with a PEG of 1.65. JNJ earns a higher WallStSmart Score of 71/100 (B).
JNJ
Strong Buy71
out of 100
Grade: B
ZTS
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.5%
Fair Value
$516.67
Current Price
$235.27
$281.40 discount
Margin of Safety
-29.5%
Fair Value
$99.36
Current Price
$115.93
$16.57 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Every $100 of equity generates 66 in profit
Strong operational efficiency at 34.7%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
Trading at 14.8x book value
3.0% revenue growth
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 28.5% and operating margin at 24.0%.
Bull Case : ZTS
The strongest argument for ZTS centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.2% and operating margin at 34.7%.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Bear Case : ZTS
The primary concerns for ZTS are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 2.85 is elevated, increasing financial risk.
Key Dynamics to Monitor
JNJ profiles as a mature stock while ZTS is a value play — different risk/reward profiles.
ZTS carries more volatility with a beta of 0.95 — expect wider price swings.
JNJ is growing revenue faster at 9.1% — sustainability is the question.
JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (71/100 vs 64/100), backed by strong 28.5% margins. 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 →Zoetis Inc
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Zoetis Inc. is an American drug company, the world's largest producer of medicine and vaccinations for pets and livestock.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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