WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 87681% more annual revenue ($96.36B vs $109.78M). TBPH leads profitability with a 104.3% profit margin vs 21.8%. TBPH trades at a lower P/E of 7.6x. 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

TBPH

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 6.5Value: 8.3Quality: 7.0
Piotroski: 4/9Altman Z: -2.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-37.5%)

Margin of Safety

-37.5%

Fair Value

$160.99

Current Price

$221.43

$60.44 premium

UndervaluedFair: $160.99Overvalued
TBPHUndervalued (+69.2%)

Margin of Safety

+69.2%

Fair Value

$63.35

Current Price

$16.52

$46.83 discount

UndervaluedFair: $63.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$535.63B10/10

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

TBPH6 strengths · Avg: 9.2/10
P/E RatioValuation
7.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
50.2%10/10

Every $100 of equity generates 50 in profit

Profit MarginProfitability
104.3%10/10

Keeps 104 of every $100 in revenue as profit

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.0%8/10

15.0% revenue growth

Areas to Watch

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

Moderate valuation

PEG RatioValuation
2.922/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

TBPH4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$876.78M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
-2.612/10

Distress zone — elevated risk

Operating MarginProfitability
-33.1%1/10

Operating margin of -33.1%

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 : TBPH

The strongest argument for TBPH centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 104.3% and operating margin at -33.1%. Revenue growth of 15.0% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : TBPH

The primary concerns for TBPH are EPS Growth, Market Cap, Altman Z-Score.

Key Dynamics to Monitor

JNJ carries more volatility with a beta of 0.26 — expect wider price swings.

TBPH is growing revenue faster at 15.0% — sustainability is the question.

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

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

JNJ scores higher overall (59/100 vs 52/100), backed by strong 21.8% margins. TBPH offers better value entry with a 69.2% margin of safety. 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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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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