WallStSmart

Johnson & Johnson (JNJ)vsMesoblast Ltd (MESO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 147279% more annual revenue ($96.36B vs $65.38M). JNJ leads profitability with a 21.8% profit margin vs -144.3%. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

MESO

Avoid

25

out of 100

Grade: F

Growth: 7.3Profit: 2.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-38.5%)

Margin of Safety

-38.5%

Fair Value

$160.72

Current Price

$221.32

$60.60 premium

UndervaluedFair: $160.72Overvalued
MESOUndervalued (+45.7%)

Margin of Safety

+45.7%

Fair Value

$33.69

Current Price

$14.74

$18.95 discount

UndervaluedFair: $33.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$535.63B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

MESO1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
1527.0%10/10

Revenue surging 1527.0% year-over-year

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.922/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

MESO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.91B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-18.2%2/10

ROE of -18.2% — below average capital efficiency

Free Cash FlowQuality
$-4.46M2/10

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 21.8% and operating margin at 27.4%.

Bull Case : MESO

The strongest argument for MESO centers on Revenue Growth. Revenue growth of 1527.0% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : MESO

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

Key Dynamics to Monitor

JNJ profiles as a mature stock while MESO is a hypergrowth play — different risk/reward profiles.

MESO carries more volatility with a beta of 0.79 — expect wider price swings.

MESO is growing revenue faster at 1527.0% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 25/100), backed by strong 21.8% margins. MESO offers better value entry with a 45.7% 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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Mesoblast Ltd

HEALTHCARE · BIOTECHNOLOGY · USA

Mesoblast Limited, a biopharmaceutical company, develops and markets allogeneic cellular drugs. The company is headquartered in Melbourne, Australia.

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