Johnson & Johnson (JNJ)vsXOMA Royalty Corporation (XOMA)
JNJ
Johnson & Johnson
$232.77
+1.07%
HEALTHCARE · Cap: $536.54B
XOMA
XOMA Royalty Corporation
$42.09
-0.73%
HEALTHCARE · Cap: $522.84M
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 198359% more annual revenue ($96.36B vs $48.55M). XOMA leads profitability with a 69.6% profit margin vs 21.8%. JNJ trades at a lower P/E of 25.8x. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
XOMA
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-71.4%
Fair Value
$135.80
Current Price
$232.77
$96.97 premium
Margin of Safety
-20.6%
Fair Value
$19.29
Current Price
$42.09
$22.80 premium
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
Keeps 70 of every $100 in revenue as profit
Earnings expanding 207.9% YoY
Every $100 of equity generates 28 in profit
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Moderate valuation
Smaller company, higher risk/reward
Elevated debt levels
Revenue declined 22.6%
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 : XOMA
The strongest argument for XOMA centers on Profit Margin, EPS Growth, Return on Equity. Profitability is solid with margins at 69.6% and operating margin at -3.9%.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : XOMA
The primary concerns for XOMA are P/E Ratio, Market Cap, Debt/Equity.
Key Dynamics to Monitor
JNJ profiles as a mature stock while XOMA is a declining play — different risk/reward profiles.
XOMA carries more volatility with a beta of 0.90 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — 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 49/100), backed by strong 21.8% margins. Both earn "Buy" and "Hold" 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 →XOMA Royalty Corporation
HEALTHCARE · BIOTECHNOLOGY · USA
XOMA Corporation, a biotech royalty aggregator, discovers and develops therapeutic candidates in the United States, Europe, and Asia Pacific. The company is headquartered in Emeryville, California.
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