WallStSmart

Johnson & Johnson (JNJ)vsEli Lilly and Company (LLY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 15% more annual revenue ($99.33B vs $86.46B). LLY leads profitability with a 31.9% profit margin vs 16.2%. LLY appears more attractively valued with a PEG of 1.36. LLY earns a higher WallStSmart Score of 74/100 (B).

JNJ

Buy

54

out of 100

Grade: C-

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

LLY

Strong Buy

74

out of 100

Grade: B

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-89.3%)

Margin of Safety

-89.3%

Fair Value

$144.28

Current Price

$266.19

$121.91 premium

UndervaluedFair: $144.28Overvalued

Intrinsic value data unavailable for LLY.

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

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$1.26T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
78.8%10/10

Every $100 of equity generates 79 in profit

Profit MarginProfitability
31.9%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
53.7%10/10

Strong operational efficiency at 53.7%

Revenue GrowthGrowth
38.6%10/10

Revenue surging 38.6% year-over-year

Free Cash FlowQuality
$7.76B8/10

Generating 7.8B in free cash flow

Areas to Watch

JNJ4 concerns · Avg: 2.3/10
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

EPS GrowthGrowth
-95.9%2/10

Earnings declined 95.9%

LLY3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.623/10

Elevated debt levels

P/E RatioValuation
46.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
31.2x2/10

Trading at 31.2x book value

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 : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.9% and operating margin at 53.7%. Revenue growth of 38.6% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : LLY

The primary concerns for LLY are Debt/Equity, P/E Ratio, Price/Book. A P/E of 46.0x leaves little room for execution misses. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

LLY carries more volatility with a beta of 0.45 — expect wider price swings.

LLY is growing revenue faster at 38.6% — sustainability is the question.

LLY generates stronger free cash flow (7.8B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (74/100 vs 54/100), backed by strong 31.9% margins and 38.6% 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.

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Eli Lilly and Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.

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