Johnson & Johnson (JNJ)vsNovocure Ltd (NVCR)
JNJ
Johnson & Johnson
$265.58
-0.29%
HEALTHCARE · Cap: $640.02B
NVCR
Novocure Ltd
$15.51
+1.04%
HEALTHCARE · Cap: $2.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 13906% more annual revenue ($97.93B vs $699.19M). JNJ leads profitability with a 21.5% profit margin vs -21.2%. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
NVCR
Avoid29
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-88.9%
Fair Value
$140.57
Current Price
$265.58
$125.01 premium
Margin of Safety
+81.5%
Fair Value
$56.59
Current Price
$15.51
$41.08 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
15.6% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 0.9%
Weak financial health signals
ROE of -52.3% — below average capital efficiency
Earnings declined 6.0%
Distress zone — elevated risk
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 21.5% and operating margin at 29.2%.
Bull Case : NVCR
The strongest argument for NVCR centers on Revenue Growth. Revenue growth of 15.6% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : NVCR
The primary concerns for NVCR are Piotroski F-Score, Return on Equity, EPS Growth.
Key Dynamics to Monitor
JNJ profiles as a mature stock while NVCR is a growth play — different risk/reward profiles.
NVCR carries more volatility with a beta of 1.01 — expect wider price swings.
NVCR is growing revenue faster at 15.6% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 29/100), backed by strong 21.5% margins. NVCR offers better value entry with a 81.5% 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.
Visit Website →Novocure Ltd
HEALTHCARE · MEDICAL DEVICES · USA
NovoCure Limited, an oncology company, is engaged in the development, manufacture and marketing of Optune for the treatment of a variety of solid tumors. The company is headquartered in Saint Helier, Jersey.
Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?