WallStSmart

Johnson & Johnson (JNJ)vsOmeros Corporation (OMER)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 258437% more annual revenue ($99.33B vs $38.42M). OMER leads profitability with a 324.9% profit margin vs 16.2%. OMER appears more attractively valued with a PEG of 0.81. JNJ earns a higher WallStSmart Score of 57/100 (C).

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

OMER

Hold

44

out of 100

Grade: D

Growth: 5.0Profit: 4.5Value: 8.7Quality: 5.5
Piotroski: 3/9Altman Z: -3.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-83.0%)

Margin of Safety

-83.0%

Fair Value

$144.12

Current Price

$271.17

$127.05 premium

UndervaluedFair: $144.12Overvalued
OMERUndervalued (+88.1%)

Margin of Safety

+88.1%

Fair Value

$94.46

Current Price

$17.88

$76.58 discount

UndervaluedFair: $94.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$615.87B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.1%8/10

Strong operational efficiency at 25.1%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

OMER4 strengths · Avg: 9.0/10
Profit MarginProfitability
324.9%10/10

Keeps 325 of every $100 in revenue as profit

Debt/EquityHealth
-1.6310/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.818/10

Growing faster than its price suggests

P/E RatioValuation
13.3x8/10

Attractively priced relative to earnings

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-96.0%2/10

Earnings declined 96.0%

OMER4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.22B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.3%3/10

Operating margin of 0.3%

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, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.1%.

Bull Case : OMER

The strongest argument for OMER centers on Profit Margin, Debt/Equity, PEG Ratio. Profitability is solid with margins at 324.9% and operating margin at 0.3%. Revenue growth of 14.9% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : OMER

The primary concerns for OMER are EPS Growth, Market Cap, Operating Margin.

Key Dynamics to Monitor

OMER carries more volatility with a beta of 2.57 — expect wider price swings.

OMER is growing revenue faster at 14.9% — sustainability is the question.

JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

JNJ scores higher overall (57/100 vs 44/100), backed by strong 16.2% margins. OMER offers better value entry with a 88.1% margin of safety. Both earn "Buy" and "Hold" 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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Omeros Corporation

HEALTHCARE · BIOTECHNOLOGY · USA

Omeros Corporation, a commercial-stage biopharmaceutical company, discovers, develops, and markets protein and small molecule therapies, and orphan indications targeting inflammation, complement-mediated diseases, central nervous system (CNS) disorders, and system-related diseases. immunological. The company is headquartered in Seattle, Washington.

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