Johnson & Johnson (JNJ)vsWaters Corporation (WAT)
JNJ
Johnson & Johnson
$265.58
-0.29%
HEALTHCARE · Cap: $640.02B
WAT
Waters Corporation
$408.34
+1.67%
HEALTHCARE · Cap: $39.56B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 2009% more annual revenue ($97.93B vs $4.64B). JNJ leads profitability with a 21.5% profit margin vs 3.6%. WAT appears more attractively valued with a PEG of 1.52. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
WAT
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-88.9%
Fair Value
$140.57
Current Price
$265.58
$125.01 premium
Margin of Safety
-46.3%
Fair Value
$225.08
Current Price
$408.34
$183.26 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Revenue surging 113.4% year-over-year
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 0.9%
Expensive relative to growth rate
ROE of 1.1% — below average capital efficiency
3.6% margin — thin
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 21.5% and operating margin at 29.2%.
Bull Case : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score, Price/Book. Revenue growth of 113.4% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Return on Equity, Profit Margin. A P/E of 102.5x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
JNJ profiles as a mature stock while WAT is a hypergrowth play — different risk/reward profiles.
WAT carries more volatility with a beta of 1.19 — expect wider price swings.
WAT is growing revenue faster at 113.4% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 45/100), backed by strong 21.5% margins. Both earn "Buy" and "Hold" 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 →Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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