WallStSmart

Johnson & Johnson (JNJ)vsSonoma Pharmaceuticals Inc (SNOA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 543642% more annual revenue ($96.36B vs $17.72M). JNJ leads profitability with a 21.8% profit margin vs -19.0%. SNOA appears more attractively valued with a PEG of 1.08. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

SNOA

Hold

44

out of 100

Grade: D

Growth: 5.3Profit: 2.0Value: 7.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$229.85

$69.72 premium

UndervaluedFair: $160.13Overvalued
SNOAUndervalued (+33.1%)

Margin of Safety

+33.1%

Fair Value

$4.11

Current Price

$1.10

$3.01 discount

UndervaluedFair: $4.11Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

SNOA2 strengths · Avg: 9.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
22.0%8/10

Revenue surging 22.0% year-over-year

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

SNOA4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$4.98M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-81.2%2/10

ROE of -81.2% — below average capital efficiency

Free Cash FlowQuality
$-811,0002/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull 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 : SNOA

The strongest argument for SNOA centers on Price/Book, Revenue Growth. Revenue growth of 22.0% demonstrates continued momentum. PEG of 1.08 suggests the stock is reasonably priced for its growth.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Bear Case : SNOA

The primary concerns for SNOA are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

JNJ profiles as a mature stock while SNOA is a growth play — different risk/reward profiles.

SNOA carries more volatility with a beta of 1.76 — expect wider price swings.

SNOA is growing revenue faster at 22.0% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 44/100), backed by strong 21.8% margins. SNOA offers better value entry with a 33.1% margin of safety. Both earn "Buy" and "Hold" 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.

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Sonoma Pharmaceuticals Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Sonoma Pharmaceuticals, Inc., develops and produces stabilized hypochlorous acid (HOCl) products for various applications, including wound care, animal health care, eye care, oral care, and dermatological conditions in the United States and internationally. The company is headquartered in Woodstock, Georgia.

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