HUTCHMED DRC (HCM)vsJohnson & Johnson (JNJ)
HCM
HUTCHMED DRC
$13.32
-3.48%
HEALTHCARE · Cap: $2.44B
JNJ
Johnson & Johnson
$271.17
+0.86%
HEALTHCARE · Cap: $615.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 17990% more annual revenue ($99.33B vs $549.12M). JNJ leads profitability with a 16.2% profit margin vs 3.3%. JNJ trades at a lower P/E of 38.8x. JNJ earns a higher WallStSmart Score of 57/100 (C).
HCM
Avoid28
out of 100
Grade: F
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+40.8%
Fair Value
$25.53
Current Price
$13.32
$12.21 discount
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$271.17
$127.05 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 38 in profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Mega-cap, among the largest globally
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Areas to Watch
0.2% revenue growth
3.3% margin — thin
Operating margin of 0.3%
Weak financial health signals
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : HCM
The strongest argument for HCM centers on Return on Equity, Debt/Equity, Price/Book.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.1%.
Bear Case : HCM
The primary concerns for HCM are Revenue Growth, Profit Margin, Operating Margin. A P/E of 140.5x leaves little room for execution misses. Thin 3.3% margins leave little buffer for downturns.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
HCM profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
HCM carries more volatility with a beta of 0.36 — expect wider price swings.
JNJ is growing revenue faster at 5.9% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 28/100), backed by strong 16.2% margins. HCM offers better value entry with a 40.8% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
HUTCHMED DRC
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
HUTCHMED (China) Limited discovers, develops and markets targeted immunotherapies and therapies for cancer and immune diseases globally. The company is headquartered in Central, Hong Kong.
Visit Website →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 - SPECIALTY & GENERIC Stocks
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