WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 15054% more annual revenue ($96.36B vs $635.89M). TMDX leads profitability with a 27.0% profit margin vs 21.8%. TMDX trades at a lower P/E of 16.9x. JNJ earns a higher WallStSmart Score of 57/100 (C).

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

TMDX

Buy

50

out of 100

Grade: C-

Growth: 6.7Profit: 8.0Value: 7.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-87.1%)

Margin of Safety

-87.1%

Fair Value

$136.12

Current Price

$254.66

$118.54 premium

UndervaluedFair: $136.12Overvalued
TMDXUndervalued (+53.7%)

Margin of Safety

+53.7%

Fair Value

$287.77

Current Price

$68.44

$219.33 discount

UndervaluedFair: $287.77Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$613.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
25.9%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

TMDX4 strengths · Avg: 8.8/10
Return on EquityProfitability
34.8%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
27.0%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
21.2%8/10

Revenue surging 21.2% year-over-year

Areas to Watch

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

Moderate valuation

PEG RatioValuation
4.892/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

TMDX4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.674/10

Distress zone — elevated risk

Debt/EquityHealth
1.753/10

Elevated debt levels

EPS GrowthGrowth
-71.5%2/10

Earnings declined 71.5%

Free Cash FlowQuality
$-12.12M2/10

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 21.8% and operating margin at 27.4%.

Bull Case : TMDX

The strongest argument for TMDX centers on Return on Equity, Profit Margin, P/E Ratio. Profitability is solid with margins at 27.0% and operating margin at 7.7%. Revenue growth of 21.2% demonstrates continued momentum.

Bear Case : JNJ

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

Bear Case : TMDX

The primary concerns for TMDX are Altman Z-Score, Debt/Equity, EPS Growth. Debt-to-equity of 1.75 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 1.88 — expect wider price swings.

TMDX is growing revenue faster at 21.2% — sustainability is the question.

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

Bottom Line

JNJ scores higher overall (57/100 vs 50/100), backed by strong 21.8% margins. TMDX offers better value entry with a 53.7% 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.

Visit Website →

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.

Visit Website →

Want to dig deeper into these stocks?