AbbVie Inc (ABBV)vsJohnson & Johnson (JNJ)
ABBV
AbbVie Inc
$294.89
+1.41%
HEALTHCARE · Cap: $521.11B
JNJ
Johnson & Johnson
$273.20
-0.73%
HEALTHCARE · Cap: $657.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 50% more annual revenue ($99.33B vs $66.01B). JNJ leads profitability with a 16.2% profit margin vs 15.7%. ABBV appears more attractively valued with a PEG of 0.60. ABBV earns a higher WallStSmart Score of 77/100 (B+).
ABBV
Strong Buy77
out of 100
Grade: B+
JNJ
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-88.0%
Fair Value
$156.84
Current Price
$294.89
$138.05 premium
Margin of Safety
-89.3%
Fair Value
$144.28
Current Price
$273.20
$128.92 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 62 in profit
Strong operational efficiency at 37.2%
Earnings expanding 2282.0% YoY
Conservative balance sheet, low leverage
Growing faster than its price suggests
Mega-cap, among the largest globally
Strong operational efficiency at 25.7%
Generating 6.4B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Distress zone — elevated risk
Trading at 8.1x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ABBV
The strongest argument for ABBV centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 15.7% and operating margin at 37.2%. Revenue growth of 10.3% demonstrates continued momentum.
Bull 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%.
Bear Case : ABBV
The primary concerns for ABBV are P/E Ratio, Altman Z-Score. A P/E of 50.7x leaves little room for execution misses.
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.
Key Dynamics to Monitor
ABBV carries more volatility with a beta of 0.23 — expect wider price swings.
ABBV is growing revenue faster at 10.3% — 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
ABBV scores higher overall (77/100 vs 54/100), backed by strong 15.7% margins and 10.3% revenue growth. 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.
AbbVie Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
AbbVie is an American publicly traded biopharmaceutical company founded in 2013. It originated as a spin-off of Abbott Laboratories.
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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