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ALGN vs JNJ

ALGN
Align Technology, Inc.
NEUTRAL
Price
$164.23
Market Cap
$11.78B
Sector
Healthcare
AI Confidence
78%
JNJ
Johnson & Johnson
NEUTRAL
Price
$244.85
Market Cap
$590.06B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
ALGN
29.07
JNJ
22.22
Forward P/E
ALGN
13.39
JNJ
19.48
P/B Ratio
ALGN
2.89
JNJ
7.23
P/S Ratio
ALGN
2.92
JNJ
6.26
EV/EBITDA
ALGN
12.6
JNJ
18.27

Profitability

Gross Margin
ALGN
69.8%
JNJ
68.08%
Operating Margin
ALGN
22.38%
JNJ
23.97%
Profit Margin
ALGN
10.17%
JNJ
28.46%
ROE
ALGN
10.39%
JNJ
35.03%
ROA
ALGN
6.94%
JNJ
8.68%

Growth

Revenue Growth
ALGN
5.3%
JNJ
9.1%
Earnings Growth
ALGN
35.6%
JNJ
48.6%

Financial Health

Debt/Equity
ALGN
0.03
JNJ
0.6
Current Ratio
ALGN
1.36
JNJ
1.03
Quick Ratio
ALGN
1.17
JNJ
0.69

Dividends

Dividend Yield
ALGN
--
JNJ
2.13%
Payout Ratio
ALGN
0.0%
JNJ
46.6%

AI Verdict

ALGN NEUTRAL

ALGN's Piotroski F-Score of 4/9 indicates weak financial health, signaling potential operational inefficiencies despite stable profitability. The absence of an Altman Z-Score raises concern about default risk, though the company's extremely low debt/equity ratio (0.03) and strong liquidity support financial stability. The stock trades near its intrinsic value of $166.68 but at a premium to the Graham Number ($84.93), reflecting high growth expectations. Analysts maintain a 'buy' consensus with a target price of $201.57, suggesting upside, though recent insider selling and inconsistent earnings surprises temper enthusiasm.

Strengths
Strong gross margin of 69.80% indicates pricing power and efficient production
Low debt/equity ratio (0.03) reflects conservative capital structure and strong financial health
High operating margin (22.38%) and solid ROE (10.39%) demonstrate effective cost management and profitability
Risks
Piotroski F-Score of 4/9 is below the threshold for strong financial health, indicating potential red flags in operational efficiency or capital allocation
Recent insider selling (1 transaction, $1.51M) suggests possible lack of confidence among executives
Earnings surprise history shows inconsistency, with recent misses (e.g., -39.3% in Q3 2025) and volatility in performance
JNJ NEUTRAL

JNJ shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (28.5% margin)
Strong ROE of 35.0%
Risks
Premium vs Graham Number ($91.63)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

ALGN vs JNJ: Head-to-Head Comparison

This page compares Align Technology, Inc. (ALGN) and Johnson & Johnson (JNJ) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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