Johnson & Johnson (JNJ)vsDr. Reddy’s Laboratories Ltd ADR (RDY)
JNJ
Johnson & Johnson
$229.85
+1.10%
HEALTHCARE · Cap: $547.28B
RDY
Dr. Reddy’s Laboratories Ltd ADR
$13.73
-2.14%
HEALTHCARE · Cap: $11.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Dr. Reddy’s Laboratories Ltd ADR generates 259% more annual revenue ($345.83B vs $96.36B). JNJ leads profitability with a 21.8% profit margin vs 16.4%. JNJ appears more attractively valued with a PEG of 2.96. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
RDY
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-43.5%
Fair Value
$160.13
Current Price
$229.85
$69.72 premium
Intrinsic value data unavailable for RDY.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Generating 3.6B in free cash flow
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Trading at 17.0x book value
4.4% revenue growth
Weak financial health signals
Expensive relative to growth rate
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 21.8% and operating margin at 27.4%.
Bull Case : RDY
The strongest argument for RDY centers on Altman Z-Score, Debt/Equity, Free Cash Flow. Profitability is solid with margins at 16.4% and operating margin at 16.4%.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : RDY
The primary concerns for RDY are Price/Book, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
JNJ profiles as a mature stock while RDY is a value play — different risk/reward profiles.
JNJ carries more volatility with a beta of 0.33 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
RDY generates stronger free cash flow (3.6B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 53/100), backed by strong 21.8% margins. Both earn "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 →Dr. Reddy’s Laboratories Ltd ADR
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Dr. Reddy's Laboratories Limited is a globally integrated pharmaceutical company. The company is headquartered in Hyderabad, India.
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