Johnson & Johnson (JNJ)vsZoetis Inc (ZTS)
JNJ
Johnson & Johnson
$276.25
+1.43%
HEALTHCARE · Cap: $657.68B
ZTS
Zoetis Inc
$82.11
-7.95%
HEALTHCARE · Cap: $32.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 943% more annual revenue ($99.33B vs $9.53B). ZTS leads profitability with a 27.7% profit margin vs 16.2%. JNJ appears more attractively valued with a PEG of 3.07. ZTS earns a higher WallStSmart Score of 58/100 (C).
JNJ
Buy54
out of 100
Grade: C-
ZTS
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.3%
Fair Value
$144.28
Current Price
$276.25
$131.97 premium
Margin of Safety
+10.3%
Fair Value
$143.36
Current Price
$82.11
$61.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.7%
Generating 6.4B in free cash flow
Every $100 of equity generates 83 in profit
Strong operational efficiency at 40.7%
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
Trading at 8.2x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 10.8x book value
1.2% earnings growth
Expensive relative to growth rate
Revenue declined 0.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.7%.
Bull Case : ZTS
The strongest argument for ZTS centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 27.7% and operating margin at 40.7%.
Bear Case : JNJ
The primary concerns for JNJ are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.
Bear Case : ZTS
The primary concerns for ZTS are Price/Book, EPS Growth, PEG Ratio. Debt-to-equity of 2.93 is elevated, increasing financial risk.
Key Dynamics to Monitor
JNJ profiles as a mature stock while ZTS is a declining play — different risk/reward profiles.
ZTS carries more volatility with a beta of 0.74 — expect wider price swings.
JNJ is growing revenue faster at 5.9% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
ZTS scores higher overall (58/100 vs 54/100), backed by strong 27.7% 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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