Arrowhead Pharmaceuticals Inc (ARWR)vsJohnson & Johnson (JNJ)
ARWR
Arrowhead Pharmaceuticals Inc
$73.48
+4.18%
HEALTHCARE · Cap: $9.88B
JNJ
Johnson & Johnson
$229.85
+1.10%
HEALTHCARE · Cap: $547.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 8733% more annual revenue ($96.36B vs $1.09B). JNJ leads profitability with a 21.8% profit margin vs 18.5%. JNJ trades at a lower P/E of 26.3x. JNJ earns a higher WallStSmart Score of 59/100 (C).
ARWR
Buy56
out of 100
Grade: C
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ARWR.
Margin of Safety
-43.5%
Fair Value
$160.13
Current Price
$229.85
$69.72 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 76 in profit
Revenue surging 10461.0% year-over-year
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
Trading at 17.7x book value
Premium valuation, high expectations priced in
Distress zone — elevated risk
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : ARWR
The strongest argument for ARWR centers on Return on Equity, Revenue Growth. Profitability is solid with margins at 18.5% and operating margin at 15.5%. Revenue growth of 10461.0% demonstrates continued momentum.
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 : ARWR
The primary concerns for ARWR are Price/Book, P/E Ratio, Altman Z-Score. A P/E of 44.1x leaves little room for execution misses.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ARWR profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.
ARWR carries more volatility with a beta of 1.27 — expect wider price swings.
ARWR is growing revenue faster at 10461.0% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 56/100), backed by strong 21.8% 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.
Arrowhead Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Arrowhead Pharmaceuticals, Inc. develops drugs for the treatment of intractable diseases in the United States. The company is headquartered in Pasadena, California.
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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