WallStSmart

Emergent Biosolutions Inc (EBS)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 12871% more annual revenue ($96.36B vs $742.90M). JNJ leads profitability with a 21.8% profit margin vs 7.1%. EBS appears more attractively valued with a PEG of 0.38. JNJ earns a higher WallStSmart Score of 59/100 (C).

EBS

Buy

55

out of 100

Grade: C

Growth: 2.0Profit: 4.5Value: 10.0Quality: 6.0
Piotroski: 4/9Altman Z: 1.28

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EBSUndervalued (+74.3%)

Margin of Safety

+74.3%

Fair Value

$42.90

Current Price

$8.23

$34.67 discount

UndervaluedFair: $42.90Overvalued
JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$229.85

$69.72 premium

UndervaluedFair: $160.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EBS3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

P/E RatioValuation
8.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

Areas to Watch

EBS4 concerns · Avg: 2.8/10
Market CapQuality
$414.70M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.1%3/10

7.1% margin — thin

Debt/EquityHealth
1.143/10

Elevated debt levels

Revenue GrowthGrowth
-23.6%2/10

Revenue declined 23.6%

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : EBS

The strongest argument for EBS centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.38 suggests the stock is reasonably priced for its growth.

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 : EBS

The primary concerns for EBS are Market Cap, Profit Margin, Debt/Equity.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

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

EBS carries more volatility with a beta of 2.36 — 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 (59/100 vs 55/100), backed by strong 21.8% margins. EBS offers better value entry with a 74.3% 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.

Emergent Biosolutions Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Emergent BioSolutions Inc., a life sciences company, focuses on providing preparedness and response products and solutions for civilian and military populations that address accidental, deliberate, and naturally occurring public health threats (PHT). The company is headquartered in Gaithersburg, Maryland.

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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