WallStSmart

Grifols SA ADR (GRFS)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1153% more annual revenue ($94.19B vs $7.52B). JNJ leads profitability with a 28.5% profit margin vs 5.0%. GRFS appears more attractively valued with a PEG of 0.23. JNJ earns a higher WallStSmart Score of 71/100 (B).

GRFS

Strong Buy

71

out of 100

Grade: B

Growth: 5.3Profit: 5.5Value: 10.0Quality: 6.5
Piotroski: 3/9Altman Z: 1.13

JNJ

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 9.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GRFSUndervalued (+68.8%)

Margin of Safety

+68.8%

Fair Value

$29.48

Current Price

$7.71

$21.77 discount

UndervaluedFair: $29.48Overvalued
JNJUndervalued (+54.5%)

Margin of Safety

+54.5%

Fair Value

$516.67

Current Price

$239.93

$276.74 discount

UndervaluedFair: $516.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GRFS4 strengths · Avg: 9.0/10
PEG RatioValuation
0.2310/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

Operating MarginProfitability
20.4%8/10

Strong operational efficiency at 20.4%

JNJ6 strengths · Avg: 8.8/10
Market CapQuality
$567.22B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.0%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
28.5%9/10

Keeps 28 of every $100 in revenue as profit

Operating MarginProfitability
24.0%8/10

Strong operational efficiency at 24.0%

EPS GrowthGrowth
48.6%8/10

Earnings expanding 48.6% YoY

Free Cash FlowQuality
$5.47B8/10

Generating 5.5B in free cash flow

Areas to Watch

GRFS4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.0%4/10

4.0% revenue growth

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
5.0%3/10

5.0% margin — thin

Debt/EquityHealth
1.873/10

Elevated debt levels

JNJ1 concerns · Avg: 4.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : GRFS

The strongest argument for GRFS centers on PEG Ratio, Price/Book, P/E Ratio. PEG of 0.23 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 28.5% and operating margin at 24.0%.

Bear Case : GRFS

The primary concerns for GRFS are Revenue Growth, Return on Equity, Profit Margin. Debt-to-equity of 1.87 is elevated, increasing financial risk. Thin 5.0% margins leave little buffer for downturns.

Bear Case : JNJ

The primary concerns for JNJ are PEG Ratio.

Key Dynamics to Monitor

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

GRFS carries more volatility with a beta of 1.19 — expect wider price swings.

JNJ is growing revenue faster at 9.1% — sustainability is the question.

JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.

Bottom Line

GRFS scores higher overall (71/100 vs 71/100). JNJ offers better value entry with a 54.5% margin of safety. Both earn "Strong Buy" and "Strong 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.

Grifols SA ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Grifols, SA is dedicated to obtaining, manufacturing, preparing and selling therapeutic products, mainly blood derivatives. The company is headquartered in Barcelona, Spain.

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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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