Stock Comparison

JNJ vs UTHR

Johnson & Johnson vs United Therapeutics Corp

Who's the better investment? Let's break it down.

The Verdict

UTHR takes this one.

It's not even close. UTHR outscores JNJ by 4.0 points. That's a significant gap in our deep value framework.

JNJ

Johnson & Johnson

1.0

out of 10

Distressed

Winner

UTHR

United Therapeutics Corp

5.0

out of 10

Proceed with Caution

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Valuation

JNJ

Metric

UTHR

$557.1B

Market Cap

$23.6B

26.5

P/E Ratio

Lower may indicate better value

18.4

28.4

Forward P/E

17.2

Profitability & Growth

JNJ

Metric

UTHR

21.8%

Profit Margin

40.6%

68.0%

Gross Margin

86.6%

25.9%

Operating Margin

45.3%

26.3%

Return on Equity

19.2%

10.7%

Return on Assets

17.3%

7.9%

Revenue Growth

5.9%

$8.65

EPS

$27.09

Financial Health

JNJ

Metric

UTHR

0.6

Debt-to-Equity

Lower = less leverage

N/A

1.0

Current Ratio

Above 1.0 is healthy

6.6

0.3

Beta

Lower = less volatile

0.6

2.3%

Dividend Yield

None

Risk Comparison

JNJ

Overall

Conservative

Financial

Low

Market

Low

Competitive

Medium

Execution

Low

Regulatory

Medium

What Could Go Wrong

The biggest risk for JNJ, despite its broad diversification, remains its exposure to patent expirations and increasing biosimilar competition for blockbuster drugs like Stelara, which generated over $...

Red Flags

🚩Deceleration of organic revenue growth below 4% for two consecutive quarters, signaling broader mark...
🚩Significant increase in litigation provisions or adverse judgments exceeding $5 billion in a single ...
🚩Dividend growth rate significantly slowing or pausing, indicating a fundamental shift in capital all...

UTHR

Overall

Moderate

Financial

Low

Market

Low

Competitive

Medium

Execution

Medium

Regulatory

Medium

What Could Go Wrong

The biggest risk is the continued commercial underperformance of key therapies, as evidenced by the Q1 2026 revenue miss of $15.9 million against estimates, potentially indicating weaker-than-expected...

Red Flags

🚩Q1 2026 revenue and EPS miss ($781.5M revenue vs $797.4M est.; $5.82 EPS vs $7.00 est.) indicating c...
🚩HC Wainwright cut Q2 2026 EPS estimate to $6.07 from $6.76 on May 18, 2026, signaling a more cautiou...
🚩Insider selling by CFO James Edgemond ($5.73M on May 26, 2026) and General Counsel Paul A. Mahon (mi...

Competitive Moat

JNJ

Rating

🛡️ Wide

Trend

➡️ Stable

Intangible Assets (Patents, Brand Recognition for pharmaceutical products, consumer brands, and medical devices)Switching Costs (High for complex medical devices and established drug therapies, particularly in hospital settings)Efficient Scale (Massive global R&D, manufacturing, and distribution infrastructure)

UTHR

Rating

🛡️ Narrow

Trend

📈 Expanding

Intangible Assets/IP (patents, regulatory approvals, clinical data for rare disease indications)Switching Costs (patients on chronic therapies, physician familiarity with complex treatments)Regulatory Expertise (navigating FDA approvals for rare diseases)

Investment Thesis

JNJ1.0/10

If Johnson & Johnson continues to deliver consistent mid-single-digit organic revenue growth, driven by key pharmaceutical products and strategic MedTech innovation, while maintaining its strong dividend and capital allocation discipline, then its valuation should remain stable or grow modestly, providing a reliable long-term investment for income and capital preservation. This thesis focuses on s...

Full JNJ Analysis

UTHR5.0/10

If United Therapeutics successfully executes the commercial launch and market penetration of Ralinepag and continues to expand the Tyvaso franchise through new formulations and indications, then the company could achieve a sustainable mid-to-high single-digit revenue growth rate annually, leading to EPS growth that justifies a premium valuation multiple. This is bullish because the market may be u...

Full UTHR Analysis

Price Targets & Strategy

Price Targets & Entry/Exit Strategy

Growth Catalysts

Growth Catalysts Comparison

Market Sentiment

Market Sentiment Analysis

The Deep Dive

JNJ1.0/10

Johnson & Johnson (JNJ) continues to demonstrate robust financial performance, with Q1 2026 results exceeding consensus on both revenue and adjusted EPS, reflecting nearly 10% YoY revenue growth. Its diversified healthcare portfolio provides significant market leadership and a wide economic moat, indicating stability and consistent profitability. However, its massive market capitalization of $555.59 billion fundamentally restricts its ability to achieve 10x growth within a 3-5 year timeframe. Su...

Full JNJ Analysis

UTHR5.0/10

United Therapeutics continues to present a compelling long-term narrative driven by its robust pipeline, particularly with the positive Phase 3 results for Ralinepag and Tyvaso nebulized treprostinil, expanding its addressable markets in pulmonary hypertension and idiopathic pulmonary fibrosis. The company maintains a strong balance sheet with healthy cash flow generation. However, achieving a 10x market capitalization ($236.4 billion) within 3-5 years remains highly improbable for an establishe...

Full UTHR Analysis

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Not Financial Advice

This comparison is for educational purposes only. We are not financial advisors. Always do your own research and consult a qualified financial advisor before making investment decisions.