WallStSmart

Johnson & Johnson (JNJ)vsNovo Nordisk A/S (NVO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novo Nordisk A/S generates 236% more annual revenue ($329.43B vs $97.93B). NVO leads profitability with a 35.3% profit margin vs 21.5%. JNJ appears more attractively valued with a PEG of 2.79. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

NVO

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 10.0Value: 5.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.13

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$640.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

NVO6 strengths · Avg: 10.0/10
Market CapQuality
$205.92B10/10

Mega-cap, among the largest globally

P/E RatioValuation
11.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
52.6%10/10

Every $100 of equity generates 53 in profit

Profit MarginProfitability
35.3%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
42.5%10/10

Strong operational efficiency at 42.5%

Free Cash FlowQuality
$42.40B10/10

Generating 42.4B in free cash flow

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

NVO4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.362/10

Expensive relative to growth rate

EPS GrowthGrowth
-20.6%2/10

Earnings declined 20.6%

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 21.5% and operating margin at 29.2%.

Bull Case : NVO

The strongest argument for NVO centers on Market Cap, P/E Ratio, Return on Equity. Profitability is solid with margins at 35.3% and operating margin at 42.5%.

Bear Case : JNJ

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

Bear Case : NVO

The primary concerns for NVO are Revenue Growth, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

JNJ profiles as a mature stock while NVO is a value play — different risk/reward profiles.

NVO carries more volatility with a beta of 0.34 — expect wider price swings.

JNJ is growing revenue faster at 6.6% — sustainability is the question.

NVO generates stronger free cash flow (42.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 58/100), backed by strong 21.5% 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 →

Novo Nordisk A/S

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Novo Nordisk A / S, a healthcare company, is dedicated to the research, development, manufacture and marketing of pharmaceutical products globally. The company is headquartered in Bagsvaerd, Denmark.

Want to dig deeper into these stocks?