WallStSmart

Johnson & Johnson (JNJ)vsSTERIS plc (STE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1550% more annual revenue ($97.93B vs $5.94B). JNJ leads profitability with a 21.5% profit margin vs 13.2%. STE appears more attractively valued with a PEG of 1.76. STE earns a higher WallStSmart Score of 68/100 (B-).

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

STE

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 6.5Value: 4.0Quality: 8.5
Piotroski: 7/9Altman Z: 2.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for JNJ.

STESignificantly Overvalued (-51.8%)

Margin of Safety

-51.8%

Fair Value

$160.37

Current Price

$234.83

$74.46 premium

UndervaluedFair: $160.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$615.36B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
28.6%8/10

Strong operational efficiency at 28.6%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

STE3 strengths · Avg: 9.0/10
EPS GrowthGrowth
52.2%10/10

Earnings expanding 52.2% YoY

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
29.1x4/10

Moderate valuation

PEG RatioValuation
4.142/10

Expensive relative to growth rate

EPS GrowthGrowth
-1.0%2/10

Earnings declined 1.0%

STE2 concerns · Avg: 4.0/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

P/E RatioValuation
27.5x4/10

Moderate valuation

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 21.5% and operating margin at 28.6%.

Bull Case : STE

The strongest argument for STE centers on EPS Growth, Debt/Equity, Operating Margin.

Bear Case : JNJ

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

Bear Case : STE

The primary concerns for STE are PEG Ratio, P/E Ratio.

Key Dynamics to Monitor

JNJ profiles as a mature stock while STE is a value play — different risk/reward profiles.

STE carries more volatility with a beta of 0.92 — expect wider price swings.

STE is growing revenue faster at 7.3% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

STE scores higher overall (68/100 vs 57/100). 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.

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STERIS plc

HEALTHCARE · MEDICAL DEVICES · USA

Steris Corporation is an American Irish-domiciled medical equipment company specializing in sterilization and surgical products for the US healthcare system.

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