Johnson & Johnson (JNJ)vsZoetis Inc (ZTS)
JNJ
Johnson & Johnson
$221.32
-0.53%
HEALTHCARE · Cap: $535.63B
ZTS
Zoetis Inc
$82.83
-5.13%
HEALTHCARE · Cap: $36.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 918% more annual revenue ($96.36B vs $9.47B). ZTS leads profitability with a 28.2% profit margin vs 21.8%. ZTS appears more attractively valued with a PEG of 2.10. ZTS earns a higher WallStSmart Score of 64/100 (C+).
JNJ
Buy59
out of 100
Grade: C
ZTS
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.5%
Fair Value
$160.72
Current Price
$221.32
$60.60 premium
Margin of Safety
+19.4%
Fair Value
$159.74
Current Price
$82.83
$76.91 discount
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
Every $100 of equity generates 66 in profit
Strong operational efficiency at 34.7%
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Expensive relative to growth rate
Trading at 10.6x book value
3.0% revenue growth
Elevated debt levels
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 : ZTS
The strongest argument for ZTS centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.2% and operating margin at 34.7%.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : ZTS
The primary concerns for ZTS are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 2.85 is elevated, increasing financial risk.
Key Dynamics to Monitor
JNJ profiles as a mature stock while ZTS is a value play — different risk/reward profiles.
ZTS carries more volatility with a beta of 0.86 — 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
ZTS scores higher overall (64/100 vs 59/100), backed by strong 28.2% margins. 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 →Zoetis Inc
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Zoetis Inc. is an American drug company, the world's largest producer of medicine and vaccinations for pets and livestock.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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