WallStSmart

Johnson & Johnson (JNJ)vsLineage Cell Therapeutics Inc (LCTX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 759168% more annual revenue ($99.33B vs $13.08M). JNJ leads profitability with a 16.2% profit margin vs -246.6%. JNJ appears more attractively valued with a PEG of 3.07. JNJ earns a higher WallStSmart Score of 54/100 (C-).

JNJ

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 2.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

LCTX

Avoid

18

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 5.7Quality: 6.5
Piotroski: 3/9Altman Z: -6.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-89.3%)

Margin of Safety

-89.3%

Fair Value

$144.28

Current Price

$272.65

$128.37 premium

UndervaluedFair: $144.28Overvalued
LCTXUndervalued (+84.0%)

Margin of Safety

+84.0%

Fair Value

$11.28

Current Price

$0.98

$10.30 discount

UndervaluedFair: $11.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$657.68B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

LCTX1 strengths · Avg: 10.0/10
Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
Price/BookValuation
8.0x4/10

Trading at 8.0x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.072/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

LCTX4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$248.63M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
10.642/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.7%.

Bull Case : LCTX

The strongest argument for LCTX centers on Debt/Equity.

Bear Case : JNJ

The primary concerns for JNJ are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.

Bear Case : LCTX

The primary concerns for LCTX are EPS Growth, Market Cap, Piotroski F-Score.

Key Dynamics to Monitor

JNJ profiles as a mature stock while LCTX is a turnaround play — different risk/reward profiles.

LCTX carries more volatility with a beta of 1.69 — expect wider price swings.

JNJ is growing revenue faster at 5.9% — sustainability is the question.

JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (54/100 vs 18/100), backed by strong 16.2% margins. LCTX offers better value entry with a 84.0% margin of safety. Both earn "Buy" and "Avoid" 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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Lineage Cell Therapeutics Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Lineage Cell Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing and commercializing therapeutics for the treatment of degenerative diseases in the United States and internationally. The company is headquartered in Carlsbad, California.

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