Johnson & Johnson (JNJ)vsResMed Inc (RMD)
JNJ
Johnson & Johnson
$269.29
-0.10%
HEALTHCARE · Cap: $640.02B
RMD
ResMed Inc
$221.97
-0.73%
HEALTHCARE · Cap: $32.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 1632% more annual revenue ($97.93B vs $5.65B). RMD leads profitability with a 27.0% profit margin vs 21.5%. RMD appears more attractively valued with a PEG of 1.31. RMD earns a higher WallStSmart Score of 67/100 (B-).
JNJ
Buy59
out of 100
Grade: C
RMD
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for JNJ.
Margin of Safety
-24.1%
Fair Value
$209.18
Current Price
$221.97
$12.79 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Strong operational efficiency at 30.9%
Safe zone — low bankruptcy risk
Every $100 of equity generates 23 in profit
Keeps 27 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Generating 1.6B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 0.9%
2.4% earnings growth
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 21.5% and operating margin at 29.2%.
Bull Case : RMD
The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.0% and operating margin at 30.9%. PEG of 1.31 suggests the stock is reasonably priced for its growth.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : RMD
The primary concerns for RMD are EPS Growth.
Key Dynamics to Monitor
RMD carries more volatility with a beta of 0.77 — expect wider price swings.
RMD is growing revenue faster at 8.6% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RMD scores higher overall (67/100 vs 59/100), backed by strong 27.0% 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 →ResMed Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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