WallStSmart

Johnson & Johnson (JNJ)vsTheravance Biopharma Inc (TBPH)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 93782% more annual revenue ($97.93B vs $104.31M). TBPH leads profitability with a 51.6% profit margin vs 21.5%. TBPH trades at a lower P/E of 16.4x. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

TBPH

Hold

42

out of 100

Grade: D

Growth: 5.3Profit: 7.0Value: 7.7Quality: 7.0
Piotroski: 5/9Altman Z: 0.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for JNJ.

TBPHUndervalued (+70.6%)

Margin of Safety

+70.6%

Fair Value

$66.38

Current Price

$17.03

$49.35 discount

UndervaluedFair: $66.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$648.67B10/10

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

TBPH3 strengths · Avg: 9.0/10
Profit MarginProfitability
51.6%10/10

Keeps 52 of every $100 in revenue as profit

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

TBPH4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$884.18M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-20.9%2/10

Revenue declined 20.9%

Free Cash FlowQuality
$-8.88M2/10

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 21.5% and operating margin at 29.2%.

Bull Case : TBPH

The strongest argument for TBPH centers on Profit Margin, Debt/Equity, P/E Ratio. Profitability is solid with margins at 51.6% and operating margin at 8.9%.

Bear Case : JNJ

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

Bear Case : TBPH

The primary concerns for TBPH are EPS Growth, Market Cap, Revenue Growth.

Key Dynamics to Monitor

JNJ profiles as a mature stock while TBPH is a declining play — different risk/reward profiles.

TBPH carries more volatility with a beta of 0.24 — expect wider price swings.

JNJ is growing revenue faster at 6.6% — sustainability is the question.

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

Bottom Line

JNJ scores higher overall (59/100 vs 42/100), backed by strong 21.5% margins. TBPH offers better value entry with a 70.6% 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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Theravance Biopharma Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Theravance Biopharma, Inc., a diversified biopharmaceutical company, discovers, develops, and markets organ-selective drugs in the United States, Europe, and Asia. The company is headquartered in George Town, the Cayman Islands.

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