WallStSmart

Johnson & Johnson (JNJ)vsNeurocrine Biosciences Inc (NBIX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 3269% more annual revenue ($96.36B vs $2.86B). JNJ leads profitability with a 21.8% profit margin vs 16.7%. NBIX appears more attractively valued with a PEG of 0.42. NBIX earns a higher WallStSmart Score of 75/100 (B+).

JNJ

Buy

59

out of 100

Grade: C

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

NBIX

Strong Buy

75

out of 100

Grade: B+

Growth: 9.3Profit: 8.5Value: 7.0Quality: 8.5
Piotroski: 3/9Altman Z: 3.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$229.85

$69.72 premium

UndervaluedFair: $160.13Overvalued

Intrinsic value data unavailable for NBIX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

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

NBIX6 strengths · Avg: 8.8/10
PEG RatioValuation
0.4210/10

Growing faster than its price suggests

Altman Z-ScoreHealth
3.0810/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

Revenue GrowthGrowth
28.3%8/10

Revenue surging 28.3% year-over-year

EPS GrowthGrowth
47.7%8/10

Earnings expanding 47.7% YoY

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

NBIX2 concerns · Avg: 3.5/10
P/E RatioValuation
28.1x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : NBIX

The strongest argument for NBIX centers on PEG Ratio, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 16.7% and operating margin at 28.2%. Revenue growth of 28.3% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : NBIX

The primary concerns for NBIX are P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

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

NBIX carries more volatility with a beta of 0.35 — expect wider price swings.

NBIX is growing revenue faster at 28.3% — sustainability is the question.

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

Bottom Line

NBIX scores higher overall (75/100 vs 59/100), backed by strong 16.7% margins and 28.3% 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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Neurocrine Biosciences Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Neurocrine Biosciences, Inc., a biopharmaceutical company, discovers, develops, and markets pharmaceutical products for the treatment of neurological, endocrine, and psychiatric diseases and disorders in the United States. The company is headquartered in San Diego, California.

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