Amgen Inc (AMGN)vsJohnson & Johnson (JNJ)
AMGN
Amgen Inc
$349.58
-1.19%
HEALTHCARE · Cap: $189.18B
JNJ
Johnson & Johnson
$232.77
-2.50%
HEALTHCARE · Cap: $567.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 159% more annual revenue ($96.36B vs $37.22B). JNJ leads profitability with a 21.8% profit margin vs 21.0%. AMGN appears more attractively valued with a PEG of 2.32. AMGN earns a higher WallStSmart Score of 62/100 (C+).
AMGN
Buy62
out of 100
Grade: C+
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-25.2%
Fair Value
$277.75
Current Price
$349.58
$71.83 premium
Margin of Safety
-73.2%
Fair Value
$135.80
Current Price
$232.77
$96.97 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 85 in profit
Strong operational efficiency at 33.8%
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
4.4% earnings growth
Trading at 20.5x book value
Distress zone — elevated risk
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, Market Cap. Profitability is solid with margins at 21.0% and operating margin at 33.8%.
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, EPS Growth, Price/Book. Debt-to-equity of 6.24 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 0.42 — 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 (62/100 vs 57/100), backed by strong 21.0% margins. Both earn "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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