Johnson & Johnson (JNJ)vsLigand Pharmaceuticals Incorporated (LGND)
JNJ
Johnson & Johnson
$232.77
-2.48%
HEALTHCARE · Cap: $567.28B
LGND
Ligand Pharmaceuticals Incorporated
$237.00
+0.46%
HEALTHCARE · Cap: $5.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 35008% more annual revenue ($96.36B vs $274.48M). LGND leads profitability with a 55.9% profit margin vs 21.8%. LGND appears more attractively valued with a PEG of 1.53. LGND earns a higher WallStSmart Score of 67/100 (B-).
JNJ
Buy57
out of 100
Grade: C
LGND
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-67.8%
Fair Value
$136.12
Current Price
$232.77
$96.65 premium
Margin of Safety
-15.9%
Fair Value
$160.49
Current Price
$237.00
$76.51 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Keeps 56 of every $100 in revenue as profit
Strong operational efficiency at 33.6%
Earnings expanding 103.2% YoY
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.8% and operating margin at 27.4%.
Bull Case : LGND
The strongest argument for LGND centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 55.9% and operating margin at 33.6%. Revenue growth of 14.1% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : LGND
The primary concerns for LGND are PEG Ratio, P/E Ratio.
Key Dynamics to Monitor
LGND carries more volatility with a beta of 1.04 — expect wider price swings.
LGND is growing revenue faster at 14.1% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LGND scores higher overall (67/100 vs 57/100), backed by strong 55.9% margins and 14.1% 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.
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.
Visit Website →Ligand Pharmaceuticals Incorporated
HEALTHCARE · BIOTECHNOLOGY · USA
Ligand Pharmaceuticals Incorporated, a biopharmaceutical company, focuses on developing or acquiring technologies that help pharmaceutical companies discover and develop drugs globally. The company is headquartered in San Diego, California.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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