WallStSmart

Johnson & Johnson (JNJ)vsTransMedics Group Inc (TMDX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 13551% more annual revenue ($99.33B vs $727.65M). TMDX leads profitability with a 19.9% profit margin vs 16.2%. TMDX appears more attractively valued with a PEG of 0.80. TMDX earns a higher WallStSmart Score of 62/100 (C+).

JNJ

Buy

54

out of 100

Grade: C-

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

TMDX

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 8.0Quality: 6.5
Piotroski: 5/9Altman Z: 1.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for JNJ.

TMDXUndervalued (+56.3%)

Margin of Safety

+56.3%

Fair Value

$304.76

Current Price

$92.00

$212.76 discount

UndervaluedFair: $304.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$657.68B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

TMDX3 strengths · Avg: 9.3/10
Return on EquityProfitability
34.8%10/10

Every $100 of equity generates 35 in profit

Revenue GrowthGrowth
41.1%10/10

Revenue surging 41.1% year-over-year

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
Price/BookValuation
8.4x4/10

Trading at 8.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.072/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

TMDX3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.674/10

Distress zone — elevated risk

Debt/EquityHealth
1.673/10

Elevated debt levels

EPS GrowthGrowth
-29.8%2/10

Earnings declined 29.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.7%.

Bull Case : TMDX

The strongest argument for TMDX centers on Return on Equity, Revenue Growth, PEG Ratio. Profitability is solid with margins at 19.9% and operating margin at 13.9%. Revenue growth of 41.1% demonstrates continued momentum.

Bear Case : JNJ

The primary concerns for JNJ are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.

Bear Case : TMDX

The primary concerns for TMDX are Altman Z-Score, Debt/Equity, EPS Growth. Debt-to-equity of 1.67 is elevated, increasing financial risk.

Key Dynamics to Monitor

JNJ profiles as a mature stock while TMDX is a growth play — different risk/reward profiles.

TMDX carries more volatility with a beta of 2.10 — expect wider price swings.

TMDX is growing revenue faster at 41.1% — sustainability is the question.

JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

TMDX scores higher overall (62/100 vs 54/100), backed by strong 19.9% margins and 41.1% revenue growth. 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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TransMedics Group Inc

HEALTHCARE · MEDICAL DEVICES · USA

TransMedics Group, Inc., a commercial-stage medical technology company, is dedicated to transforming organ transplant therapy for patients with end-stage organ failure in the United States and internationally. The company is headquartered in Andover, Massachusetts.

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