Johnson & Johnson (JNJ)vsSimulations Plus Inc (SLP)
JNJ
Johnson & Johnson
$271.17
+0.86%
HEALTHCARE · Cap: $615.87B
SLP
Simulations Plus Inc
$18.50
0.00%
HEALTHCARE · Cap: $374.16M
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 120955% more annual revenue ($99.33B vs $82.06M). JNJ leads profitability with a 16.2% profit margin vs 9.9%. JNJ appears more attractively valued with a PEG of 2.82. JNJ earns a higher WallStSmart Score of 57/100 (C).
JNJ
Buy57
out of 100
Grade: C
SLP
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$271.17
$127.05 premium
Margin of Safety
+59.2%
Fair Value
$29.67
Current Price
$18.50
$11.17 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Strong operational efficiency at 22.8%
Earnings expanding 46.7% YoY
Areas to Watch
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
Smaller company, higher risk/reward
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of -38.8% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.1%.
Bull Case : SLP
The strongest argument for SLP centers on Debt/Equity, Altman Z-Score, Price/Book.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : SLP
The primary concerns for SLP are Market Cap, PEG Ratio, P/E Ratio. A P/E of 46.3x leaves little room for execution misses.
Key Dynamics to Monitor
JNJ profiles as a mature stock while SLP is a value play — different risk/reward profiles.
SLP carries more volatility with a beta of 1.31 — expect wider price swings.
SLP is growing revenue faster at 7.5% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 55/100), backed by strong 16.2% margins. SLP offers better value entry with a 59.2% margin of safety. 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 →Simulations Plus Inc
HEALTHCARE · HEALTH INFORMATION SERVICES · USA
Simulations Plus, Inc. develops drug discovery and development software for mechanistic modeling, simulation, and prediction of molecule properties using artificial intelligence and machine learning technology worldwide. The company is headquartered in Lancaster, California.
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