Johnson & Johnson (JNJ)vsWPP PLC ADR (WPP)
JNJ
Johnson & Johnson
$221.32
-0.53%
HEALTHCARE · Cap: $535.63B
WPP
WPP PLC ADR
$18.97
+1.12%
COMMUNICATION SERVICES · Cap: $4.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 611% more annual revenue ($96.36B vs $13.55B). JNJ leads profitability with a 21.8% profit margin vs -1.6%. JNJ appears more attractively valued with a PEG of 2.92. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
WPP
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.5%
Fair Value
$160.72
Current Price
$221.32
$60.60 premium
Margin of Safety
+75.6%
Fair Value
$75.12
Current Price
$18.97
$56.15 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
Generating 1.7B in free cash flow
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Operating margin of 2.2%
Weak financial health signals
Expensive relative to growth rate
ROE of -5.3% — below average capital efficiency
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 : WPP
The strongest argument for WPP centers on Free Cash Flow.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : WPP
The primary concerns for WPP are Operating Margin, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.13 is elevated, increasing financial risk.
Key Dynamics to Monitor
JNJ profiles as a mature stock while WPP is a turnaround play — different risk/reward profiles.
WPP carries more volatility with a beta of 0.65 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
WPP generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 32/100), backed by strong 21.8% margins. WPP offers better value entry with a 75.6% margin of safety. Both earn "Buy" and "Avoid" 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 →WPP PLC ADR
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
WPP plc, a creative transformation company, provides communications, expertise, trade and technology services in North America, the UK, Western Continental Europe, Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company is headquartered in London, the United Kingdom.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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