WallStSmart

Johnson & Johnson (JNJ)vsTeva Pharma Industries Ltd ADR (TEVA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 446% more annual revenue ($94.19B vs $17.26B). JNJ leads profitability with a 28.5% profit margin vs 8.2%. TEVA appears more attractively valued with a PEG of 1.43. TEVA earns a higher WallStSmart Score of 73/100 (B).

JNJ

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 9.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.62

TEVA

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 10.0Quality: 4.8
Piotroski: 6/9Altman Z: 0.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJUndervalued (+54.5%)

Margin of Safety

+54.5%

Fair Value

$516.67

Current Price

$235.27

$281.40 discount

UndervaluedFair: $516.67Overvalued
TEVAUndervalued (+39.4%)

Margin of Safety

+39.4%

Fair Value

$56.63

Current Price

$29.14

$27.49 discount

UndervaluedFair: $56.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ6 strengths · Avg: 8.8/10
Market CapQuality
$567.22B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.0%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
28.5%9/10

Keeps 29 of every $100 in revenue as profit

Operating MarginProfitability
24.0%8/10

Strong operational efficiency at 24.0%

EPS GrowthGrowth
48.6%8/10

Earnings expanding 48.6% YoY

Free Cash FlowQuality
$5.47B8/10

Generating 5.5B in free cash flow

TEVA4 strengths · Avg: 8.3/10
Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

Operating MarginProfitability
27.3%8/10

Strong operational efficiency at 27.3%

EPS GrowthGrowth
40.0%8/10

Earnings expanding 40.0% YoY

Free Cash FlowQuality
$1.02B8/10

Generating 1.0B in free cash flow

Areas to Watch

JNJ1 concerns · Avg: 4.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

TEVA1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
0.282/10

Distress zone — elevated risk

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 28.5% and operating margin at 24.0%.

Bull Case : TEVA

The strongest argument for TEVA centers on Return on Equity, Operating Margin, EPS Growth. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.43 suggests the stock is reasonably priced for its growth.

Bear Case : JNJ

The primary concerns for JNJ are PEG Ratio.

Bear Case : TEVA

The primary concerns for TEVA are Altman Z-Score.

Key Dynamics to Monitor

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

TEVA carries more volatility with a beta of 0.72 — expect wider price swings.

TEVA is growing revenue faster at 11.4% — sustainability is the question.

JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.

Bottom Line

TEVA scores higher overall (73/100 vs 71/100) and 11.4% revenue growth. JNJ offers better value entry with a 54.5% margin of safety. Both earn "Strong Buy" and "Strong 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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Teva Pharma Industries Ltd ADR

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic drugs, specialty drugs, and biopharmaceuticals in North America, Europe, and internationally. The company is headquartered in Petach Tikva, Israel.

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