Amgen Inc (AMGN)vsJohnson & Johnson (JNJ)
AMGN
Amgen Inc
$329.82
-4.75%
HEALTHCARE · Cap: $182.22B
JNJ
Johnson & Johnson
$227.19
-1.16%
HEALTHCARE · Cap: $547.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 162% more annual revenue ($96.36B vs $36.75B). JNJ leads profitability with a 21.8% profit margin vs 21.0%. AMGN appears more attractively valued with a PEG of 2.23. AMGN earns a higher WallStSmart Score of 70/100 (B-).
AMGN
Strong Buy70
out of 100
Grade: B-
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-3.6%
Fair Value
$318.37
Current Price
$329.82
$11.45 premium
Margin of Safety
-41.6%
Fair Value
$160.43
Current Price
$227.19
$66.76 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 106 in profit
Strong operational efficiency at 30.5%
Earnings expanding 112.1% YoY
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
Generating 1.5B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 20.5x book value
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : AMGN
The strongest argument for AMGN centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 21.0% and operating margin at 30.5%.
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%.
Bear Case : AMGN
The primary concerns for AMGN are PEG Ratio, Price/Book.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
AMGN carries more volatility with a beta of 0.47 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
AMGN generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AMGN scores higher overall (70/100 vs 59/100), backed by strong 21.0% 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.
Amgen Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Amgen Inc. (formerly Applied Molecular Genetics Inc.) is an American multinational biopharmaceutical company headquartered in Thousand Oaks, California. Focused on molecular biology and biochemistry, its goal is to provide a healthcare business based on recombinant DNA technology.
Visit Website →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 →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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