WallStSmart

Incyte Corporation (INCY)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1583% more annual revenue ($97.93B vs $5.82B). INCY leads profitability with a 27.7% profit margin vs 21.5%. JNJ appears more attractively valued with a PEG of 2.79. INCY earns a higher WallStSmart Score of 76/100 (B+).

INCY

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 5/9Altman Z: 3.89

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

INCYUndervalued (+84.0%)

Margin of Safety

+84.0%

Fair Value

$619.23

Current Price

$121.47

$497.76 discount

UndervaluedFair: $619.23Overvalued
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

INCY6 strengths · Avg: 9.7/10
Operating MarginProfitability
41.9%10/10

Strong operational efficiency at 41.9%

Revenue GrowthGrowth
37.7%10/10

Revenue surging 37.7% year-over-year

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.8910/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
25.4%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
27.7%9/10

Keeps 28 of every $100 in revenue as profit

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

INCY1 concerns · Avg: 2.0/10
PEG RatioValuation
10.892/10

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 : INCY

The strongest argument for INCY centers on Operating Margin, Revenue Growth, Debt/Equity. Profitability is solid with margins at 27.7% and operating margin at 41.9%. Revenue growth of 37.7% 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 21.5% and operating margin at 29.2%.

Bear Case : INCY

The primary concerns for INCY are PEG Ratio.

Bear Case : JNJ

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

Key Dynamics to Monitor

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

INCY carries more volatility with a beta of 0.77 — expect wider price swings.

INCY is growing revenue faster at 37.7% — sustainability is the question.

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

Bottom Line

INCY scores higher overall (76/100 vs 59/100), backed by strong 27.7% margins and 37.7% 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.

Incyte Corporation

HEALTHCARE · BIOTECHNOLOGY · USA

Incyte Corp is an American pharmaceutical company based in Alapocas, Delaware.

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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