Castle Biosciences Inc (CSTL)vsJohnson & Johnson (JNJ)
CSTL
Castle Biosciences Inc
$21.38
-2.73%
HEALTHCARE · Cap: $627.83M
JNJ
Johnson & Johnson
$241.00
+0.80%
HEALTHCARE · Cap: $567.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 28248% more annual revenue ($96.36B vs $339.92M). JNJ leads profitability with a 21.8% profit margin vs -3.8%. JNJ earns a higher WallStSmart Score of 57/100 (C).
CSTL
Avoid31
out of 100
Grade: F
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.2%
Fair Value
$77.42
Current Price
$21.38
$56.04 discount
Margin of Safety
-67.8%
Fair Value
$136.12
Current Price
$241.00
$104.88 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
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
Smaller company, higher risk/reward
Weak financial health signals
ROE of -2.8% — below average capital efficiency
Revenue declined 4.9%
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : CSTL
The strongest argument for CSTL centers on Price/Book, Debt/Equity, Altman Z-Score.
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 : CSTL
The primary concerns for CSTL are Market Cap, Piotroski F-Score, Return on Equity.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
CSTL profiles as a turnaround stock while JNJ is a mature play — different risk/reward profiles.
CSTL carries more volatility with a beta of 1.02 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 31/100), backed by strong 21.8% margins. CSTL offers better value entry with a 58.2% 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.
Castle Biosciences Inc
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Castle Biosciences Inc. is a leading diagnostics company dedicated to improving patient care through cutting-edge gene-expression profiling tests, specifically in the realm of skin cancer, with its flagship product, DecisionDx®-Melanoma. This innovative solution provides crucial insights into patient risk stratification, thus facilitating informed treatment decisions in melanoma management. With a steadfast commitment to precision medicine and a robust research and development framework, Castle Biosciences is strategically positioned to expand its portfolio and address pivotal clinical needs. By focusing on the complexities of oncology, the company aims to enhance clinical outcomes while driving significant value for shareholders.
Visit Website →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.
Visit Website →Compare with Other DIAGNOSTICS & RESEARCH Stocks
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