CareDx Inc (CDNA)vsJohnson & Johnson (JNJ)
CDNA
CareDx Inc
$47.31
+0.17%
HEALTHCARE · Cap: $2.35B
JNJ
Johnson & Johnson
$260.86
+0.41%
HEALTHCARE · Cap: $614.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 21278% more annual revenue ($97.93B vs $458.09M). CDNA leads profitability with a 24.2% profit margin vs 21.5%. CDNA trades at a lower P/E of 22.6x. JNJ earns a higher WallStSmart Score of 57/100 (C).
CDNA
Buy53
out of 100
Grade: C-
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+68.3%
Fair Value
$62.15
Current Price
$47.31
$14.84 discount
Margin of Safety
-87.3%
Fair Value
$139.75
Current Price
$260.86
$121.11 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 52.2% year-over-year
Conservative balance sheet, low leverage
Keeps 24 of every $100 in revenue as profit
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Areas to Watch
0.0% earnings growth
Operating margin of 0.2%
ROE of -2.6% — below average capital efficiency
Distress zone — elevated risk
Moderate valuation
Expensive relative to growth rate
Earnings declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : CDNA
The strongest argument for CDNA centers on Revenue Growth, Debt/Equity, Profit Margin. Profitability is solid with margins at 24.2% and operating margin at 0.2%. Revenue growth of 52.2% 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 21.5% and operating margin at 29.2%.
Bear Case : CDNA
The primary concerns for CDNA are EPS Growth, Operating Margin, Return on Equity.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
CDNA profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.
CDNA carries more volatility with a beta of 2.42 — expect wider price swings.
CDNA is growing revenue faster at 52.2% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 53/100), backed by strong 21.5% margins. CDNA offers better value entry with a 68.3% margin of safety. 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.
CareDx Inc
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
CareDx, Inc. discovers, develops and markets diagnostic solutions for transplant patients and caregivers globally. The company is headquartered in South San Francisco, 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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