Gilead Sciences Inc (GILD)vsJohnson & Johnson (JNJ)
GILD
Gilead Sciences Inc
$129.16
-1.35%
HEALTHCARE · Cap: $154.33B
JNJ
Johnson & Johnson
$232.77
-2.48%
HEALTHCARE · Cap: $567.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 224% more annual revenue ($96.36B vs $29.74B). GILD leads profitability with a 31.0% profit margin vs 21.8%. GILD appears more attractively valued with a PEG of 2.14. GILD earns a higher WallStSmart Score of 68/100 (B-).
GILD
Strong Buy68
out of 100
Grade: B-
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+42.5%
Fair Value
$221.22
Current Price
$129.16
$92.06 discount
Margin of Safety
-73.2%
Fair Value
$135.80
Current Price
$232.77
$96.97 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 39 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 39.3%
Earnings expanding 54.8% YoY
Large-cap with strong market position
Attractively priced relative to earnings
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
Expensive relative to growth rate
4.4% revenue growth
Grey zone — moderate risk
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : GILD
The strongest argument for GILD centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.0% and operating margin at 39.3%.
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 : GILD
The primary concerns for GILD are PEG Ratio, Revenue Growth, Altman Z-Score.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
GILD profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
GILD carries more volatility with a beta of 0.33 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
GILD generates stronger free cash flow (2.4B), providing more financial flexibility.
Bottom Line
GILD scores higher overall (68/100 vs 57/100), backed by strong 31.0% 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.
Gilead Sciences Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.
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 DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?