WallStSmart

Johnson & Johnson (JNJ)vsPacira BioSciences, Inc. (PCRX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 13013% more annual revenue ($96.36B vs $734.86M). JNJ leads profitability with a 21.8% profit margin vs 0.7%. JNJ appears more attractively valued with a PEG of 2.92. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

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

PCRX

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 4.0Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-37.5%)

Margin of Safety

-37.5%

Fair Value

$160.99

Current Price

$221.43

$60.44 premium

UndervaluedFair: $160.99Overvalued
PCRXUndervalued (+88.9%)

Margin of Safety

+88.9%

Fair Value

$196.10

Current Price

$22.74

$173.36 discount

UndervaluedFair: $196.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$535.63B10/10

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

PCRX1 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.922/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

PCRX4 concerns · Avg: 3.0/10
Market CapQuality
$910.90M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.7%3/10

ROE of 0.7% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
2.6%3/10

Operating margin of 2.6%

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 21.8% and operating margin at 27.4%.

Bull Case : PCRX

The strongest argument for PCRX centers on Price/Book.

Bear Case : JNJ

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

Bear Case : PCRX

The primary concerns for PCRX are Market Cap, Return on Equity, Profit Margin. A P/E of 178.1x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

PCRX carries more volatility with a beta of 0.32 — 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 41/100), backed by strong 21.8% margins. PCRX offers better value entry with a 88.9% 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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Pacira BioSciences, Inc.

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Pacira BioSciences, Inc. provides non-opioid pain management and regenerative health solutions for healthcare professionals and their patients in the United States. The company is headquartered in Parsippany, New Jersey.

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