WallStSmart

Johnson & Johnson (JNJ)vsOrthopediatrics Corp (KIDS)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 38649% more annual revenue ($97.93B vs $252.72M). JNJ leads profitability with a 21.5% profit margin vs -15.7%. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

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

KIDS

Hold

35

out of 100

Grade: F

Growth: 7.3Profit: 2.0Value: 6.7Quality: 7.5
Piotroski: 4/9Altman Z: 1.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$265.58

$125.01 premium

UndervaluedFair: $140.57Overvalued
KIDSUndervalued (+72.0%)

Margin of Safety

+72.0%

Fair Value

$61.56

Current Price

$22.06

$39.50 discount

UndervaluedFair: $61.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

KIDS3 strengths · Avg: 8.3/10
Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.4%8/10

15.4% revenue growth

Areas to Watch

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%

KIDS4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$595.30M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-11.6%2/10

ROE of -11.6% — below average capital efficiency

Free Cash FlowQuality
$-3.12M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : KIDS

The strongest argument for KIDS centers on Debt/Equity, Price/Book, Revenue Growth. Revenue growth of 15.4% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : KIDS

The primary concerns for KIDS are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

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

KIDS carries more volatility with a beta of 0.96 — expect wider price swings.

KIDS is growing revenue faster at 15.4% — sustainability is the question.

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

Bottom Line

JNJ scores higher overall (59/100 vs 35/100), backed by strong 21.5% margins. KIDS offers better value entry with a 72.0% margin of safety. Both earn "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.

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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Orthopediatrics Corp

HEALTHCARE · MEDICAL DEVICES · USA

OrthoPediatrics Corp. The company is headquartered in Warsaw, Indiana.

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