WallStSmart

Illumina Inc (ILMN)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 2079% more annual revenue ($97.93B vs $4.49B). JNJ leads profitability with a 21.5% profit margin vs 18.3%. ILMN appears more attractively valued with a PEG of 2.69. JNJ earns a higher WallStSmart Score of 59/100 (C).

ILMN

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 8.5Value: 5.3Quality: 6.5
Piotroski: 6/9Altman Z: 1.88

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ILMNUndervalued (+58.4%)

Margin of Safety

+58.4%

Fair Value

$279.71

Current Price

$206.45

$73.26 discount

UndervaluedFair: $279.71Overvalued
JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$265.58

$125.01 premium

UndervaluedFair: $140.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ILMN2 strengths · Avg: 8.5/10
Return on EquityProfitability
29.1%9/10

Every $100 of equity generates 29 in profit

Operating MarginProfitability
21.1%8/10

Strong operational efficiency at 21.1%

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$640.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

ILMN4 concerns · Avg: 3.5/10
P/E RatioValuation
39.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

Altman Z-ScoreHealth
1.884/10

Grey zone — moderate risk

PEG RatioValuation
2.692/10

Expensive relative to growth rate

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

Comparative Analysis Report

WallStSmart Research

Bull 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, Return on Equity, Profit Margin. Profitability is solid with margins at 21.5% and operating margin at 29.2%.

Bear Case : ILMN

The primary concerns for ILMN are P/E Ratio, Price/Book, Altman Z-Score.

Bear Case : JNJ

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

Key Dynamics to Monitor

ILMN carries more volatility with a beta of 1.47 — expect wider price swings.

ILMN is growing revenue faster at 9.4% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Monitor DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.

Bottom Line

JNJ scores higher overall (59/100 vs 56/100), backed by strong 21.5% margins. ILMN offers better value entry with a 58.4% 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.

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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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