WallStSmart

Galapagos NV ADR (GLPG)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 8564% more annual revenue ($96.36B vs $1.11B). GLPG leads profitability with a 28.8% profit margin vs 21.8%. GLPG trades at a lower P/E of 5.0x. GLPG earns a higher WallStSmart Score of 74/100 (B).

GLPG

Strong Buy

74

out of 100

Grade: B

Growth: 10.0Profit: 8.5Value: 8.3Quality: 5.0

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

GLPGUndervalued (+89.3%)

Margin of Safety

+89.3%

Fair Value

$316.70

Current Price

$27.86

$288.84 discount

UndervaluedFair: $316.70Overvalued
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

GLPG5 strengths · Avg: 9.8/10
P/E RatioValuation
5.0x10/10

Attractively priced relative to earnings

Operating MarginProfitability
88.0%10/10

Strong operational efficiency at 88.0%

Revenue GrowthGrowth
1093.0%10/10

Revenue surging 1093.0% year-over-year

EPS GrowthGrowth
3036.0%10/10

Earnings expanding 3036.0% YoY

Profit MarginProfitability
28.8%9/10

Keeps 29 of every $100 in revenue as profit

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

GLPG3 concerns · Avg: 3.0/10
Price/BookValuation
9.6x4/10

Trading at 9.6x book value

Market CapQuality
$1.91B3/10

Smaller company, higher risk/reward

Free Cash FlowQuality
$-43.28M2/10

Negative free cash flow — burning cash

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 : GLPG

The strongest argument for GLPG centers on P/E Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 28.8% and operating margin at 88.0%. Revenue growth of 1093.0% 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 21.8% and operating margin at 27.4%.

Bear Case : GLPG

The primary concerns for GLPG are Price/Book, Market Cap, Free Cash Flow.

Bear Case : JNJ

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

Key Dynamics to Monitor

GLPG profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.

JNJ carries more volatility with a beta of 0.33 — expect wider price swings.

GLPG is growing revenue faster at 1093.0% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

GLPG scores higher overall (74/100 vs 59/100), backed by strong 28.8% margins and 1093.0% revenue growth. 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.

Galapagos NV ADR

HEALTHCARE · BIOTECHNOLOGY · USA

Galapagos NV, a clinical-stage biotechnology company, discovers, develops and markets several small molecule drugs. The company is headquartered in Mechelen, Belgium.

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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