WallStSmart

Johnson & Johnson (JNJ)vsWarby Parker Inc (WRBY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 10952% more annual revenue ($96.36B vs $871.90M). JNJ leads profitability with a 21.8% profit margin vs 0.2%. JNJ trades at a lower P/E of 26.3x. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

WRBY

Avoid

34

out of 100

Grade: F

Growth: 6.0Profit: 3.0Value: 5.7Quality: 5.0
Piotroski: 3/9Altman Z: 0.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$229.85

$69.72 premium

UndervaluedFair: $160.13Overvalued
WRBYUndervalued (+30.9%)

Margin of Safety

+30.9%

Fair Value

$31.81

Current Price

$22.53

$9.28 discount

UndervaluedFair: $31.81Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

WRBY0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

WRBY4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
0.5%3/10

ROE of 0.5% — below average capital efficiency

Profit MarginProfitability
0.2%3/10

0.2% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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 : WRBY

Revenue growth of 11.2% demonstrates continued momentum.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Bear Case : WRBY

The primary concerns for WRBY are EPS Growth, Return on Equity, Profit Margin. A P/E of 2147.0x leaves little room for execution misses. Thin 0.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

JNJ profiles as a mature stock while WRBY is a value play — different risk/reward profiles.

WRBY carries more volatility with a beta of 2.08 — expect wider price swings.

WRBY is growing revenue faster at 11.2% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 34/100), backed by strong 21.8% margins. WRBY offers better value entry with a 30.9% 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.

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Warby Parker Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Warby Parker Inc. is a pioneering force in the direct-to-consumer eyewear sector, established in 2010 to transform the optical experience through a combination of online convenience and an expanding network of retail locations. The company emphasizes stylish, affordable prescription eyewear and sunglasses, uniquely positioning itself to attract a diverse customer base. Its socially responsible business model, highlighted by the "Buy a Pair, Give a Pair" initiative, underscores a commitment to community welfare, providing eyewear to those in need. With a strong brand identity and innovative marketing approaches, Warby Parker is poised for sustained growth and resilience in an increasingly competitive industry.

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