WallStSmart

Johnson & Johnson (JNJ)vsSTERIS plc (STE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1523% more annual revenue ($96.36B vs $5.94B). JNJ leads profitability with a 21.8% profit margin vs 13.2%. STE appears more attractively valued with a PEG of 1.41. STE earns a higher WallStSmart Score of 70/100 (B).

JNJ

Buy

59

out of 100

Grade: C

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

STE

Strong Buy

70

out of 100

Grade: B

Growth: 7.3Profit: 6.5Value: 4.7Quality: 7.8
Piotroski: 7/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-71.4%)

Margin of Safety

-71.4%

Fair Value

$135.80

Current Price

$232.77

$96.97 premium

UndervaluedFair: $135.80Overvalued
STESignificantly Overvalued (-52.2%)

Margin of Safety

-52.2%

Fair Value

$159.97

Current Price

$212.35

$52.38 premium

UndervaluedFair: $159.97Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$536.54B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
25.9%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

STE4 strengths · Avg: 8.8/10
EPS GrowthGrowth
52.2%10/10

Earnings expanding 52.2% YoY

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.912/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

STE1 concerns · Avg: 4.0/10
P/E RatioValuation
26.2x4/10

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 21.8% and operating margin at 27.4%.

Bull Case : STE

The strongest argument for STE centers on EPS Growth, Debt/Equity, Price/Book. PEG of 1.41 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 : STE

The primary concerns for STE are 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.

JNJ is growing revenue faster at 9.9% — sustainability is the question.

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

Bottom Line

STE scores higher overall (70/100 vs 59/100). 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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