Johnson & Johnson (JNJ)vsWest Pharmaceutical Services Inc (WST)
JNJ
Johnson & Johnson
$259.24
+0.88%
HEALTHCARE · Cap: $614.36B
WST
West Pharmaceutical Services Inc
$354.07
+1.57%
HEALTHCARE · Cap: $24.00B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 2844% more annual revenue ($97.93B vs $3.33B). JNJ leads profitability with a 21.5% profit margin vs 17.0%. WST appears more attractively valued with a PEG of 2.91. WST earns a higher WallStSmart Score of 61/100 (C+).
JNJ
Buy57
out of 100
Grade: C
WST
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.8%
Fair Value
$139.37
Current Price
$259.24
$119.87 premium
Margin of Safety
-47.9%
Fair Value
$166.45
Current Price
$354.07
$187.62 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
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Strong operational efficiency at 22.5%
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 0.9%
Trading at 8.4x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : WST
The strongest argument for WST centers on Altman Z-Score, Debt/Equity, Operating Margin. Profitability is solid with margins at 17.0% and operating margin at 22.5%. Revenue growth of 13.8% demonstrates continued momentum.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : WST
The primary concerns for WST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 43.5x leaves little room for execution misses.
Key Dynamics to Monitor
WST carries more volatility with a beta of 1.16 — expect wider price swings.
WST is growing revenue faster at 13.8% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WST scores higher overall (61/100 vs 57/100), backed by strong 17.0% margins and 13.8% revenue growth. Both earn "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 →West Pharmaceutical Services Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.
Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?