WallStSmart

Johnson & Johnson (JNJ)vsStryker Corporation (SYK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 279% more annual revenue ($97.93B vs $25.84B). JNJ leads profitability with a 21.5% profit margin vs 14.4%. SYK appears more attractively valued with a PEG of 1.55. SYK earns a higher WallStSmart Score of 63/100 (C+).

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

SYK

Buy

63

out of 100

Grade: C+

Growth: 8.0Profit: 7.5Value: 3.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-84.8%)

Margin of Safety

-84.8%

Fair Value

$139.37

Current Price

$259.24

$119.87 premium

UndervaluedFair: $139.37Overvalued
SYKSignificantly Overvalued (-47.2%)

Margin of Safety

-47.2%

Fair Value

$228.91

Current Price

$339.03

$110.12 premium

UndervaluedFair: $228.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$614.36B10/10

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
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

SYK3 strengths · Avg: 8.3/10
Market CapQuality
$128.87B9/10

Large-cap with strong market position

Operating MarginProfitability
27.0%8/10

Strong operational efficiency at 27.0%

EPS GrowthGrowth
44.1%8/10

Earnings expanding 44.1% YoY

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
29.5x4/10

Moderate valuation

PEG RatioValuation
4.232/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

SYK3 concerns · Avg: 3.7/10
PEG RatioValuation
1.554/10

Expensive relative to growth rate

P/E RatioValuation
35.3x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 29.2%.

Bull Case : SYK

The strongest argument for SYK centers on Market Cap, Operating Margin, EPS Growth.

Bear Case : JNJ

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

Bear Case : SYK

The primary concerns for SYK are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

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

SYK carries more volatility with a beta of 0.77 — expect wider price swings.

SYK is growing revenue faster at 9.4% — sustainability is the question.

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

Bottom Line

SYK scores higher overall (63/100 vs 57/100). 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.

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Stryker Corporation

HEALTHCARE · MEDICAL DEVICES · USA

Stryker Corporation is an American multinational medical technologies corporation based in Kalamazoo, Michigan. Stryker's products include implants used in joint replacement and trauma surgeries; surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling and emergency medical equipment; neurosurgical, neurovascular and spinal devices; as well as other medical device products used in a variety of medical specialties.

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