Johnson & Johnson (JNJ)vsWestern Digital Corporation (WDC)
JNJ
Johnson & Johnson
$235.37
-0.94%
HEALTHCARE · Cap: $573.82B
WDC
Western Digital Corporation
$293.10
-7.52%
TECHNOLOGY · Cap: $100.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 778% more annual revenue ($94.19B vs $10.73B). WDC leads profitability with a 35.6% profit margin vs 28.5%. WDC appears more attractively valued with a PEG of 0.69. JNJ earns a higher WallStSmart Score of 71/100 (B).
JNJ
Strong Buy71
out of 100
Grade: B
WDC
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.9%
Fair Value
$515.74
Current Price
$235.37
$280.37 discount
Margin of Safety
-311.2%
Fair Value
$66.57
Current Price
$293.10
$226.53 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Every $100 of equity generates 41 in profit
Keeps 36 of every $100 in revenue as profit
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 14.0x book value
Revenue declined 41.0%
Earnings declined 95.9%
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 28.5% and operating margin at 24.0%.
Bull Case : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
JNJ profiles as a mature stock while WDC is a declining play — different risk/reward profiles.
WDC carries more volatility with a beta of 1.85 — expect wider price swings.
JNJ is growing revenue faster at 9.1% — sustainability is the question.
JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (71/100 vs 55/100), backed by strong 28.5% 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 →Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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