WallStSmart

Johnson & Johnson (JNJ)vsPhreesia Inc (PHR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 19951% more annual revenue ($96.36B vs $480.59M). JNJ leads profitability with a 21.8% profit margin vs 0.5%. JNJ trades at a lower P/E of 25.8x. 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

PHR

Hold

43

out of 100

Grade: D

Growth: 6.7Profit: 4.0Value: 5.7Quality: 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

$224.26

$63.27 premium

UndervaluedFair: $160.99Overvalued
PHRUndervalued (+77.8%)

Margin of Safety

+77.8%

Fair Value

$56.21

Current Price

$9.57

$46.64 discount

UndervaluedFair: $56.21Overvalued

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

PHR2 strengths · Avg: 8.0/10
Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.9%8/10

15.9% revenue growth

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%

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

0.0% earnings growth

Market CapQuality
$581.50M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.8%3/10

ROE of 0.8% — below average capital efficiency

Profit MarginProfitability
0.5%3/10

0.5% 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 Price/Book, Revenue Growth. Revenue growth of 15.9% 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 239.3x leaves little room for execution misses. Thin 0.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

PHR carries more volatility with a beta of 0.89 — expect wider price swings.

PHR is growing revenue faster at 15.9% — 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 43/100), backed by strong 21.8% margins. PHR offers better value entry with a 77.8% 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.

Visit Website →

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.

Want to dig deeper into these stocks?