WallStSmart

American Well Corp (AMWL)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 44714% more annual revenue ($97.93B vs $218.53M). JNJ leads profitability with a 21.5% profit margin vs -35.7%. JNJ earns a higher WallStSmart Score of 59/100 (C).

AMWL

Avoid

31

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 6.7Quality: 6.5
Piotroski: 5/9Altman Z: -6.51

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 3.3Quality: 5.5
Piotroski: 3/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMWLUndervalued (+53.5%)

Margin of Safety

+53.5%

Fair Value

$9.30

Current Price

$12.64

$3.34 discount

UndervaluedFair: $9.30Overvalued
JNJSignificantly Overvalued (-82.7%)

Margin of Safety

-82.7%

Fair Value

$141.39

Current Price

$258.34

$116.95 premium

UndervaluedFair: $141.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMWL2 strengths · Avg: 10.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$613.99B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

AMWL4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$208.70M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-38.7%2/10

ROE of -38.7% — below average capital efficiency

Revenue GrowthGrowth
-26.6%2/10

Revenue declined 26.6%

JNJ4 concerns · Avg: 2.8/10
P/E RatioValuation
29.5x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : AMWL

The strongest argument for AMWL centers on Price/Book, Debt/Equity.

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 : AMWL

The primary concerns for AMWL are EPS Growth, Market Cap, Return on Equity.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

AMWL profiles as a turnaround stock while JNJ is a mature play — different risk/reward profiles.

AMWL carries more volatility with a beta of 1.68 — expect wider price swings.

JNJ is growing revenue faster at 6.6% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 31/100), backed by strong 21.5% margins. AMWL offers better value entry with a 53.5% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

American Well Corp

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

American Well Corporation is a telehealth business enabling digital healthcare delivery. The company is headquartered in Boston, Massachusetts.

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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