Johnson & Johnson (JNJ)vsVertex Pharmaceuticals Inc (VRTX)
JNJ
Johnson & Johnson
$276.25
+1.43%
HEALTHCARE · Cap: $657.68B
VRTX
Vertex Pharmaceuticals Inc
$547.09
+0.85%
HEALTHCARE · Cap: $141.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 689% more annual revenue ($99.33B vs $12.59B). VRTX leads profitability with a 35.0% profit margin vs 16.2%. VRTX appears more attractively valued with a PEG of 2.18. VRTX earns a higher WallStSmart Score of 62/100 (C+).
JNJ
Buy54
out of 100
Grade: C-
VRTX
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for JNJ.
Margin of Safety
+42.4%
Fair Value
$949.93
Current Price
$547.09
$402.84 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.7%
Generating 6.4B in free cash flow
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 38.1%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Trading at 8.2x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 35.0% and operating margin at 38.1%. Revenue growth of 12.5% 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 : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
VRTX carries more volatility with a beta of 0.28 — expect wider price swings.
VRTX is growing revenue faster at 12.5% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
VRTX scores higher overall (62/100 vs 54/100), backed by strong 35.0% margins and 12.5% 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.
Visit Website →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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