Johnson & Johnson (JNJ)vsRoyalty Pharma Plc (RPRX)
JNJ
Johnson & Johnson
$248.94
-1.67%
HEALTHCARE · Cap: $623.71B
RPRX
Royalty Pharma Plc
$57.30
-1.52%
HEALTHCARE · Cap: $33.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 3848% more annual revenue ($96.36B vs $2.44B). RPRX leads profitability with a 33.9% profit margin vs 21.8%. RPRX appears more attractively valued with a PEG of 2.18. RPRX earns a higher WallStSmart Score of 65/100 (C+).
JNJ
Buy57
out of 100
Grade: C
RPRX
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-85.4%
Fair Value
$136.92
Current Price
$248.94
$112.02 premium
Margin of Safety
-66.9%
Fair Value
$34.85
Current Price
$57.30
$22.45 premium
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
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 100.3%
Earnings expanding 23.2% YoY
Areas to Watch
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 52.9%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Elevated debt levels
Weak financial health signals
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 : RPRX
The strongest argument for RPRX centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 33.9% and operating margin at 100.3%. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : RPRX
The primary concerns for RPRX are PEG Ratio, P/E Ratio, Debt/Equity.
Key Dynamics to Monitor
RPRX carries more volatility with a beta of 0.42 — expect wider price swings.
RPRX is growing revenue faster at 11.0% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RPRX scores higher overall (65/100 vs 57/100), backed by strong 33.9% margins and 11.0% revenue growth. 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 →Royalty Pharma Plc
HEALTHCARE · BIOTECHNOLOGY · USA
Royalty Pharma plc is a buyer of biopharmaceutical royalties and funder of innovations in the biopharmaceutical industry in the United States. The company is headquartered in New York, New York.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?