Johnson & Johnson (JNJ)vsVertex Pharmaceuticals Inc (VRTX)
JNJ
Johnson & Johnson
$231.29
+3.37%
HEALTHCARE · Cap: $567.28B
VRTX
Vertex Pharmaceuticals Inc
$466.79
+0.35%
HEALTHCARE · Cap: $114.33B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 689% more annual revenue ($96.36B vs $12.22B). VRTX leads profitability with a 35.5% profit margin vs 21.8%. VRTX appears more attractively valued with a PEG of 1.69. VRTX earns a higher WallStSmart Score of 68/100 (B-).
JNJ
Buy57
out of 100
Grade: C
VRTX
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-67.8%
Fair Value
$136.12
Current Price
$231.29
$95.17 premium
Margin of Safety
+52.4%
Fair Value
$949.55
Current Price
$466.79
$482.76 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 38.1%
Earnings expanding 61.4% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 35.5% and operating margin at 38.1%.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
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 0.31 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — 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
VRTX scores higher overall (68/100 vs 57/100), backed by strong 35.5% margins. Both earn "Strong 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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