Johnson & Johnson (JNJ)vsPenumbra Inc (PEN)
JNJ
Johnson & Johnson
$276.25
+1.43%
HEALTHCARE · Cap: $657.68B
PEN
Penumbra Inc
$319.21
-0.59%
HEALTHCARE · Cap: $12.76B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 6501% more annual revenue ($99.33B vs $1.50B). JNJ leads profitability with a 16.2% profit margin vs 10.7%. JNJ appears more attractively valued with a PEG of 3.07. JNJ earns a higher WallStSmart Score of 54/100 (C-).
JNJ
Buy54
out of 100
Grade: C-
PEN
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.3%
Fair Value
$144.28
Current Price
$276.25
$131.97 premium
Margin of Safety
-9.4%
Fair Value
$309.07
Current Price
$319.21
$10.14 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.7%
Generating 6.4B in free cash flow
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
Trading at 8.2x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 8.2x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 23.5%
Comparative Analysis Report
WallStSmart ResearchBull 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 25.7%.
Bull Case : PEN
The strongest argument for PEN centers on Altman Z-Score, Debt/Equity. Revenue growth of 14.9% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.
Bear Case : PEN
The primary concerns for PEN are Price/Book, PEG Ratio, P/E Ratio. A P/E of 79.6x leaves little room for execution misses.
Key Dynamics to Monitor
JNJ profiles as a mature stock while PEN is a value play — different risk/reward profiles.
PEN carries more volatility with a beta of 0.70 — expect wider price swings.
PEN is growing revenue faster at 14.9% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (54/100 vs 42/100), backed by strong 16.2% margins. 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.
Visit Website →Penumbra Inc
HEALTHCARE · MEDICAL DEVICES · USA
Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, and internationally. The company is headquartered in Alameda, California.
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