WallStSmart

Johnson & Johnson (JNJ)vsPhreesia Inc (PHR)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 19344% more annual revenue ($96.36B vs $495.59M). JNJ leads profitability with a 21.8% profit margin vs 1.9%. JNJ trades at a lower P/E of 29.5x. JNJ earns a higher WallStSmart Score of 57/100 (C).

JNJ

Buy

57

out of 100

Grade: C

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

PHR

Hold

44

out of 100

Grade: D

Growth: 6.0Profit: 4.5Value: 5.7Quality: 5.5
Piotroski: 3/9Altman Z: -0.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-87.1%)

Margin of Safety

-87.1%

Fair Value

$136.12

Current Price

$254.66

$118.54 premium

UndervaluedFair: $136.12Overvalued
PHRUndervalued (+72.6%)

Margin of Safety

+72.6%

Fair Value

$45.65

Current Price

$9.13

$36.52 discount

UndervaluedFair: $45.65Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$613.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
25.9%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

PHR2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
29.5x4/10

Moderate valuation

PEG RatioValuation
4.892/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

PHR4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$622.45M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
2.6%3/10

ROE of 2.6% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

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 : PHR

The strongest argument for PHR centers on Debt/Equity, Price/Book. Revenue growth of 12.9% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : PHR

The primary concerns for PHR are EPS Growth, Market Cap, Return on Equity. A P/E of 62.9x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

PHR carries more volatility with a beta of 0.88 — expect wider price swings.

PHR is growing revenue faster at 12.9% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (57/100 vs 44/100), backed by strong 21.8% margins. PHR offers better value entry with a 72.6% 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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Phreesia Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

Phreesia, Inc. provides integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company is headquartered in Raleigh, North Carolina.

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