Johnson & Johnson (JNJ)vs3M Company (MMM)
JNJ
Johnson & Johnson
$221.32
-0.53%
HEALTHCARE · Cap: $535.63B
MMM
3M Company
$143.29
-0.32%
INDUSTRIALS · Cap: $74.98B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 285% more annual revenue ($96.36B vs $25.02B). JNJ leads profitability with a 21.8% profit margin vs 11.1%. MMM appears more attractively valued with a PEG of 1.50. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
MMM
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.5%
Fair Value
$160.99
Current Price
$221.32
$60.33 premium
Margin of Safety
-31.4%
Fair Value
$131.53
Current Price
$143.29
$11.76 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
Every $100 of equity generates 72 in profit
Large-cap with strong market position
Strong operational efficiency at 23.3%
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Moderate valuation
1.3% revenue growth
Trading at 22.9x book value
Earnings declined 39.7%
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 : MMM
The strongest argument for MMM centers on Return on Equity, Market Cap, Operating Margin.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : MMM
The primary concerns for MMM are P/E Ratio, Revenue Growth, Price/Book. Debt-to-equity of 2.75 is elevated, increasing financial risk.
Key Dynamics to Monitor
JNJ profiles as a mature stock while MMM is a value play — different risk/reward profiles.
MMM carries more volatility with a beta of 1.09 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — 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 56/100), backed by strong 21.8% margins. Both earn "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 →3M Company
INDUSTRIALS · CONGLOMERATES · USA
The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical and electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software and optical films. It is based in Maplewood, a suburb of Saint Paul, Minnesota.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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