WallStSmart

Accuray Incorporated (ARAY)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 24613% more annual revenue ($99.33B vs $401.95M). JNJ leads profitability with a 16.2% profit margin vs -12.2%. JNJ appears more attractively valued with a PEG of 3.07. JNJ earns a higher WallStSmart Score of 54/100 (C-).

ARAY

Hold

37

out of 100

Grade: F

Growth: 2.0Profit: 3.0Value: 4.0Quality: 3.0
Piotroski: 1/9Altman Z: -0.67

JNJ

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARAY0 strengths · Avg: 0/10

No standout strengths identified

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$657.68B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

Areas to Watch

ARAY4 concerns · Avg: 3.0/10
Price/BookValuation
8.8x4/10

Trading at 8.8x book value

Market CapQuality
$16.72M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
29.492/10

Expensive relative to growth rate

JNJ4 concerns · Avg: 2.8/10
Price/BookValuation
8.4x4/10

Trading at 8.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.072/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ARAY

ARAY has a balanced fundamental profile.

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 25.7%.

Bear Case : ARAY

The primary concerns for ARAY are Price/Book, Market Cap, Piotroski F-Score. Debt-to-equity of 2.56 is elevated, increasing financial risk.

Bear Case : JNJ

The primary concerns for JNJ are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.

Key Dynamics to Monitor

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

ARAY carries more volatility with a beta of 1.42 — expect wider price swings.

JNJ is growing revenue faster at 5.9% — sustainability is the question.

JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (54/100 vs 37/100), backed by strong 16.2% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Accuray Incorporated

HEALTHCARE · MEDICAL DEVICES · USA

Accuray Incorporated designs, develops and sells radiosurgery and radiation therapy systems for the treatment of tumors in the body in the Americas, Europe, the Middle East, India, Japan, Africa and the rest of the Asia Pacific region. The company is headquartered in Sunnyvale, California.

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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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