Amgen Inc (AMGN)vsJohnson & Johnson (JNJ)
AMGN
Amgen Inc
$451.83
+0.87%
HEALTHCARE · Cap: $233.82B
JNJ
Johnson & Johnson
$271.17
+0.86%
HEALTHCARE · Cap: $615.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 161% more annual revenue ($99.33B vs $38.09B). AMGN leads profitability with a 23.0% profit margin vs 16.2%. AMGN appears more attractively valued with a PEG of 2.45. AMGN earns a higher WallStSmart Score of 71/100 (B).
AMGN
Strong Buy71
out of 100
Grade: B
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-53.3%
Fair Value
$286.59
Current Price
$451.83
$165.24 premium
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$271.17
$127.05 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
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 20.9x book value
Distress zone — elevated risk
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
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, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.1%.
Bear Case : AMGN
The primary concerns for AMGN are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 4.90 is elevated, increasing financial risk.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
AMGN carries more volatility with a beta of 0.41 — expect wider price swings.
AMGN is growing revenue faster at 9.5% — 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
AMGN scores higher overall (71/100 vs 57/100), 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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