WallStSmart

Insmed Inc (INSM)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 15433% more annual revenue ($94.19B vs $606.42M). JNJ leads profitability with a 28.5% profit margin vs -210.5%. INSM appears more attractively valued with a PEG of 1.09. JNJ earns a higher WallStSmart Score of 71/100 (B).

INSM

Hold

39

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.3Quality: 6.3
Piotroski: 6/9Altman Z: -3.77

JNJ

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 9.0Value: 6.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for INSM.

JNJUndervalued (+53.5%)

Margin of Safety

+53.5%

Fair Value

$516.67

Current Price

$240.45

$276.22 discount

UndervaluedFair: $516.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INSM1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
152.6%10/10

Revenue surging 152.6% year-over-year

JNJ6 strengths · Avg: 8.8/10
Market CapQuality
$579.46B10/10

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 29 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

INSM4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
42.1x2/10

Trading at 42.1x book value

Return on EquityProfitability
-249.3%2/10

ROE of -249.3% — below average capital efficiency

Free Cash FlowQuality
$-294.19M2/10

Negative free cash flow — burning cash

JNJ1 concerns · Avg: 4.0/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : INSM

The strongest argument for INSM centers on Revenue Growth. Revenue growth of 152.6% demonstrates continued momentum. PEG of 1.09 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 : INSM

The primary concerns for INSM are EPS Growth, Price/Book, Return on Equity.

Bear Case : JNJ

The primary concerns for JNJ are PEG Ratio.

Key Dynamics to Monitor

INSM profiles as a hypergrowth stock while JNJ is a mature play — different risk/reward profiles.

INSM carries more volatility with a beta of 1.17 — expect wider price swings.

INSM is growing revenue faster at 152.6% — sustainability is the question.

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

Bottom Line

JNJ scores higher overall (71/100 vs 39/100), backed by strong 28.5% margins. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Insmed Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Insmed Incorporated, a biopharmaceutical company, develops and markets therapies for patients with rare and serious diseases. The company is headquartered in Bridgewater, New Jersey.

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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