Amgen Inc (AMGN)vsJohnson & Johnson (JNJ)
AMGN
Amgen Inc
$377.35
-1.34%
HEALTHCARE · Cap: $204.01B
JNJ
Johnson & Johnson
$265.58
-0.29%
HEALTHCARE · Cap: $640.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 157% more annual revenue ($97.93B vs $38.09B). AMGN leads profitability with a 23.0% profit margin vs 21.5%. AMGN appears more attractively valued with a PEG of 2.30. AMGN earns a higher WallStSmart Score of 71/100 (B).
AMGN
Strong Buy71
out of 100
Grade: B
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.2%
Fair Value
$285.44
Current Price
$377.35
$91.91 premium
Margin of Safety
-88.9%
Fair Value
$140.57
Current Price
$265.58
$125.01 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 75 in profit
Strong operational efficiency at 35.5%
Earnings expanding 64.9% YoY
Keeps 23 of every $100 in revenue as profit
Generating 3.5B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 17.5x book value
Distress zone — elevated risk
Elevated debt levels
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : AMGN
The strongest argument for AMGN centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 23.0% and operating margin at 35.5%.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.5% and operating margin at 29.2%.
Bear Case : AMGN
The primary concerns for AMGN are PEG Ratio, Price/Book, Altman Z-Score. Debt-to-equity of 4.90 is elevated, increasing financial risk.
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 0.43 — expect wider price swings.
AMGN is growing revenue faster at 9.5% — sustainability is the question.
AMGN generates stronger free cash flow (3.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AMGN scores higher overall (71/100 vs 59/100), backed by strong 23.0% 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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