WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 10642% more annual revenue ($97.93B vs $911.61M). JNJ leads profitability with a 21.5% profit margin vs 0.8%. JNJ trades at a lower P/E of 30.9x. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

WRBY

Avoid

30

out of 100

Grade: F

Growth: 5.3Profit: 3.0Value: 3.7Quality: 5.0
Piotroski: 3/9Altman Z: 0.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$265.58

$125.01 premium

UndervaluedFair: $140.57Overvalued
WRBYOvervalued (-5.9%)

Margin of Safety

-5.9%

Fair Value

$20.77

Current Price

$24.71

$3.94 premium

UndervaluedFair: $20.77Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$640.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B 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
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

WRBY4 concerns · Avg: 3.3/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Return on EquityProfitability
0.4%3/10

ROE of 0.4% — below average capital efficiency

Profit MarginProfitability
0.8%3/10

0.8% 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 21.5% and operating margin at 29.2%.

Bull Case : WRBY

WRBY has a balanced fundamental profile.

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 Price/Book, Return on Equity, Profit Margin. A P/E of 409.5x leaves little room for execution misses. Thin 0.8% 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 1.91 — expect wider price swings.

WRBY is growing revenue faster at 9.8% — 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 30/100), backed by strong 21.5% margins. 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. (WRBY) is an innovative direct-to-consumer eyewear company that has redefined the eyewear shopping experience since its inception in 2010. With a successful blend of e-commerce and physical retail expansion, the company offers stylish and affordable prescription glasses and sunglasses, appealing to a broad demographic. Warby Parker is distinguished by its commitment to social responsibility, exemplified by its "Buy a Pair, Give a Pair" initiative, which underscores its dedication to making a positive impact. As the company leverages its strong brand reputation and effective marketing strategies, it is well-positioned for continued growth in the increasingly competitive eyewear sector, addressing evolving consumer preferences while enhancing its social mission.

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