WallStSmart

Intuitive Surgical Inc (ISRG)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 787% more annual revenue ($97.93B vs $11.03B). ISRG leads profitability with a 28.4% profit margin vs 21.5%. ISRG appears more attractively valued with a PEG of 1.73. ISRG earns a higher WallStSmart Score of 66/100 (B-).

ISRG

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 9.0Value: 6.0Quality: 7.8
Piotroski: 4/9Altman Z: 5.95

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ISRGUndervalued (+80.5%)

Margin of Safety

+80.5%

Fair Value

$1922.89

Current Price

$378.81

$1544.08 discount

UndervaluedFair: $1922.89Overvalued
JNJSignificantly Overvalued (-84.8%)

Margin of Safety

-84.8%

Fair Value

$139.37

Current Price

$259.24

$119.87 premium

UndervaluedFair: $139.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ISRG6 strengths · Avg: 9.0/10
Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Altman Z-ScoreHealth
5.9510/10

Safe zone — low bankruptcy risk

Market CapQuality
$131.94B9/10

Large-cap with strong market position

Profit MarginProfitability
28.4%9/10

Keeps 28 of every $100 in revenue as profit

Revenue GrowthGrowth
18.5%8/10

18.5% revenue growth

EPS GrowthGrowth
26.5%8/10

Earnings expanding 26.5% YoY

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$614.36B10/10

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

ISRG2 concerns · Avg: 4.0/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

P/E RatioValuation
39.7x4/10

Premium valuation, high expectations priced in

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
29.5x4/10

Moderate valuation

PEG RatioValuation
4.232/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : ISRG

The strongest argument for ISRG centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 28.4% and operating margin at 33.6%. Revenue growth of 18.5% 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 : ISRG

The primary concerns for ISRG are PEG Ratio, P/E Ratio.

Bear Case : JNJ

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

Key Dynamics to Monitor

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

ISRG carries more volatility with a beta of 1.46 — expect wider price swings.

ISRG is growing revenue faster at 18.5% — sustainability is the question.

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

Bottom Line

ISRG scores higher overall (66/100 vs 57/100), backed by strong 28.4% margins and 18.5% 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.

Intuitive Surgical Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Intuitive Surgical, Inc. is an American corporation that develops, manufactures, and markets robotic products designed to improve clinical outcomes of patients through minimally invasive surgery, most notably with the da Vinci Surgical System.

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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