WallStSmart

Boston Scientific Corp (BSX)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 371% more annual revenue ($99.33B vs $21.07B). BSX leads profitability with a 16.6% profit margin vs 16.2%. BSX appears more attractively valued with a PEG of 0.63. BSX earns a higher WallStSmart Score of 62/100 (C+).

BSX

Buy

62

out of 100

Grade: C+

Growth: 4.7Profit: 7.0Value: 6.7Quality: 5.5
Piotroski: 5/9Altman Z: 1.78

JNJ

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 2.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BSXOvervalued (-7.2%)

Margin of Safety

-7.2%

Fair Value

$39.17

Current Price

$42.75

$3.58 premium

UndervaluedFair: $39.17Overvalued
JNJSignificantly Overvalued (-89.3%)

Margin of Safety

-89.3%

Fair Value

$144.28

Current Price

$276.25

$131.97 premium

UndervaluedFair: $144.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BSX6 strengths · Avg: 8.2/10
Market CapQuality
$60.84B9/10

Large-cap with strong market position

PEG RatioValuation
0.638/10

Growing faster than its price suggests

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.2%8/10

Strong operational efficiency at 20.2%

Free Cash FlowQuality
$1.28B8/10

Generating 1.3B in free cash flow

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

BSX3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.4%4/10

1.4% revenue growth

Altman Z-ScoreHealth
1.784/10

Distress zone — elevated risk

EPS GrowthGrowth
-21.5%2/10

Earnings declined 21.5%

JNJ4 concerns · Avg: 2.8/10
Price/BookValuation
8.2x4/10

Trading at 8.2x 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 : BSX

The strongest argument for BSX centers on Market Cap, PEG Ratio, P/E Ratio. Profitability is solid with margins at 16.6% and operating margin at 20.2%. PEG of 0.63 suggests the stock is reasonably priced for its growth.

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 : BSX

The primary concerns for BSX are Revenue Growth, Altman Z-Score, EPS Growth.

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

BSX profiles as a value stock while JNJ is a mature play — different risk/reward profiles.

BSX carries more volatility with a beta of 0.57 — 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

BSX scores higher overall (62/100 vs 54/100), backed by strong 16.6% 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.

Boston Scientific Corp

HEALTHCARE · MEDICAL DEVICES · USA

Boston Scientific Corporation, doing business as Boston Scientific, is a manufacturer of medical devices used in interventional medical specialties, including interventional radiology, interventional cardiology, peripheral interventions, neuromodulation, neurovascular intervention, electrophysiology, cardiac surgery, vascular surgery, endoscopy, oncology, urology and gynecology.

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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