WallStSmart

Johnson & Johnson (JNJ)vsZymeworks Inc. Common Stock (ZYME)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 118480% more annual revenue ($96.36B vs $81.26M). JNJ leads profitability with a 21.8% profit margin vs -126.3%. 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

ZYME

Avoid

18

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 5.3Quality: 7.0
Piotroski: 5/9Altman Z: -1.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-71.4%)

Margin of Safety

-71.4%

Fair Value

$135.80

Current Price

$232.77

$96.97 premium

UndervaluedFair: $135.80Overvalued
ZYMEUndervalued (+2.0%)

Margin of Safety

+2.0%

Fair Value

$23.29

Current Price

$24.04

$0.75 discount

UndervaluedFair: $23.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$536.54B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
25.9%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

ZYME1 strengths · Avg: 9.0/10
Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.912/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

ZYME4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.77B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-42.0%2/10

ROE of -42.0% — below average capital efficiency

Revenue GrowthGrowth
-91.1%2/10

Revenue declined 91.1%

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 : ZYME

The strongest argument for ZYME centers on Debt/Equity.

Bear Case : JNJ

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

Bear Case : ZYME

The primary concerns for ZYME are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

JNJ profiles as a mature stock while ZYME is a turnaround play — different risk/reward profiles.

ZYME carries more volatility with a beta of 1.19 — expect wider price swings.

JNJ is growing revenue faster at 9.9% — 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 18/100), backed by strong 21.8% margins. Both earn "Buy" and "Avoid" 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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Zymeworks Inc. Common Stock

HEALTHCARE · BIOTECHNOLOGY · USA

Zymeworks Inc., a clinical-stage biopharmaceutical company, discovers, develops and markets biotherapeutic products for the treatment of cancer. The company is headquartered in Vancouver, Canada.

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