WallStSmart

Johnson & Johnson (JNJ)vsXORTX Therapeutics Inc (XRTX)

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Smart Verdict

WallStSmart Research — data-driven comparison

JNJ leads profitability with a 21.5% profit margin vs 0.0%. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

XRTX

Avoid

24

out of 100

Grade: F

Growth: 3.7Profit: 3.0Value: 5.0Quality: 4.8
Piotroski: 1/9Altman Z: -14.19

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$648.67B10/10

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

XRTX1 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

XRTX4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Market CapQuality
$3.09M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Operating MarginProfitability
0.0%3/10

Operating margin of 0.0%

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 : XRTX

The strongest argument for XRTX centers on Price/Book.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : XRTX

The primary concerns for XRTX are Revenue Growth, Market Cap, Profit Margin.

Key Dynamics to Monitor

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

XRTX carries more volatility with a beta of 0.44 — expect wider price swings.

JNJ is growing revenue faster at 6.6% — 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 24/100), 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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XORTX Therapeutics Inc

HEALTHCARE · BIOTECHNOLOGY · USA

XORTX Therapeutics Inc., a biopharmaceutical company, is dedicated to the development and commercialization of therapies to treat progressive kidney disease, hypertension, insulin resistance, and diabetic nephropathy. The company is headquartered in Vancouver, Canada.

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