Johnson & Johnson (JNJ)vsPure Storage Inc (PSTG)
JNJ
Johnson & Johnson
$235.37
-0.94%
HEALTHCARE · Cap: $573.82B
PSTG
Pure Storage Inc
$62.63
-4.31%
TECHNOLOGY · Cap: $20.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 2472% more annual revenue ($94.19B vs $3.66B). JNJ leads profitability with a 28.5% profit margin vs 5.1%. PSTG appears more attractively valued with a PEG of 1.47. JNJ earns a higher WallStSmart Score of 71/100 (B).
JNJ
Strong Buy71
out of 100
Grade: B
PSTG
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.9%
Fair Value
$515.74
Current Price
$235.37
$280.37 discount
Margin of Safety
-195.4%
Fair Value
$25.74
Current Price
$62.63
$36.89 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Earnings expanding 140.6% YoY
Revenue surging 20.4% year-over-year
Areas to Watch
Expensive relative to growth rate
Trading at 14.3x book value
5.1% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 28.5% and operating margin at 24.0%.
Bull Case : PSTG
The strongest argument for PSTG centers on EPS Growth, Revenue Growth. Revenue growth of 20.4% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Bear Case : PSTG
The primary concerns for PSTG are Price/Book, Profit Margin, P/E Ratio. A P/E of 113.9x leaves little room for execution misses.
Key Dynamics to Monitor
JNJ profiles as a mature stock while PSTG is a growth play — different risk/reward profiles.
PSTG carries more volatility with a beta of 1.33 — expect wider price swings.
PSTG is growing revenue faster at 20.4% — sustainability is the question.
JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (71/100 vs 59/100), backed by strong 28.5% margins. Both earn "Strong Buy" and "Buy" 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 →Pure Storage Inc
TECHNOLOGY · COMPUTER HARDWARE · USA
Pure Storage, Inc. provides data storage technology and solutions in the United States and internationally. The company is headquartered in Mountain View, California.
Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?