Illumina Inc (ILMN)vsJohnson & Johnson (JNJ)
ILMN
Illumina Inc
$288.79
+3.33%
HEALTHCARE · Cap: $39.64B
JNJ
Johnson & Johnson
$275.19
+1.53%
HEALTHCARE · Cap: $615.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 2110% more annual revenue ($99.33B vs $4.49B). ILMN leads profitability with a 18.3% profit margin vs 16.2%. JNJ appears more attractively valued with a PEG of 2.82. JNJ earns a higher WallStSmart Score of 57/100 (C).
ILMN
Buy51
out of 100
Grade: C-
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.2%
Fair Value
$278.38
Current Price
$288.79
$10.41 discount
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$275.19
$131.07 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 29 in profit
Strong operational efficiency at 21.1%
Mega-cap, among the largest globally
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Areas to Watch
Trading at 15.4x book value
Grey zone — moderate risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : ILMN
The strongest argument for ILMN centers on Return on Equity, Operating Margin. Profitability is solid with margins at 18.3% and operating margin at 21.1%.
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 : ILMN
The primary concerns for ILMN are Price/Book, Altman Z-Score, PEG Ratio. A P/E of 49.0x leaves little room for execution misses.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
ILMN carries more volatility with a beta of 1.42 — expect wider price swings.
ILMN is growing revenue faster at 9.4% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Monitor DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.
Bottom Line
JNJ scores higher overall (57/100 vs 51/100), backed by strong 16.2% margins. ILMN offers better value entry with a 58.2% margin of safety. Both earn "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.
Illumina Inc
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Illumina, Inc. is an American company. Incorporated on April 1, 1998, Illumina develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. The company provides a line of products and services that serves the sequencing, genotyping and gene expression, and proteomics markets. Its headquarters are located in San Diego, California.
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.
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