WallStSmart

Exelixis Inc (EXEL)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 4053% more annual revenue ($96.36B vs $2.32B). EXEL leads profitability with a 33.7% profit margin vs 21.8%. EXEL appears more attractively valued with a PEG of 2.27. EXEL earns a higher WallStSmart Score of 70/100 (B-).

EXEL

Strong Buy

70

out of 100

Grade: B-

Growth: 8.0Profit: 10.0Value: 7.3Quality: 7.8
Piotroski: 5/9Altman Z: 4.09

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

EXELUndervalued (+74.0%)

Margin of Safety

+74.0%

Fair Value

$165.35

Current Price

$44.46

$120.89 discount

UndervaluedFair: $165.35Overvalued
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

EXEL6 strengths · Avg: 9.7/10
Return on EquityProfitability
35.5%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
33.7%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
39.4%10/10

Strong operational efficiency at 39.4%

EPS GrowthGrowth
84.2%10/10

Earnings expanding 84.2% YoY

Altman Z-ScoreHealth
4.0910/10

Safe zone — low bankruptcy risk

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

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

EXEL1 concerns · Avg: 4.0/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

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 : EXEL

The strongest argument for EXEL centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 33.7% and operating margin at 39.4%.

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 : EXEL

The primary concerns for EXEL are PEG Ratio.

Bear Case : JNJ

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

Key Dynamics to Monitor

EXEL carries more volatility with a beta of 0.42 — 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.

Monitor BIOTECHNOLOGY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

EXEL scores higher overall (70/100 vs 59/100), backed by strong 33.7% margins. Both earn "Strong 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.

Exelixis Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Exelixis, Inc., an oncology-focused biotechnology company, is focused on the discovery, development, and commercialization of new drugs to treat cancers in the United States. The company is headquartered in Alameda, 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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