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HCM vs JNJ

HCM
HUTCHMED (China) Limited
NEUTRAL
Price
$15.24
Market Cap
$2.62B
Sector
Healthcare
AI Confidence
80%
JNJ
Johnson & Johnson
NEUTRAL
Price
$244.85
Market Cap
$590.06B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
HCM
5.75
JNJ
22.22
Forward P/E
HCM
29.34
JNJ
19.48
P/B Ratio
HCM
2.12
JNJ
7.23
P/S Ratio
HCM
4.78
JNJ
6.26
EV/EBITDA
HCM
-458.18
JNJ
18.27

Profitability

Gross Margin
HCM
11.64%
JNJ
68.08%
Operating Margin
HCM
-13.16%
JNJ
23.97%
Profit Margin
HCM
83.3%
JNJ
28.46%
ROE
HCM
45.25%
JNJ
35.03%
ROA
HCM
-1.62%
JNJ
8.68%

Growth

Revenue Growth
HCM
-16.5%
JNJ
9.1%
Earnings Growth
HCM
-98.1%
JNJ
48.6%

Financial Health

Debt/Equity
HCM
0.08
JNJ
0.6
Current Ratio
HCM
4.96
JNJ
1.03
Quick Ratio
HCM
4.81
JNJ
0.69

Dividends

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

AI Verdict

HCM NEUTRAL

HCM presents a contradictory profile: it is fundamentally undervalued based on deterministic metrics, with a Piotroski F-Score of 5/9 (Stable) and a current price ($15.24) well below both its Graham Number ($20.72) and Intrinsic Value ($18.55). However, the company's operational health is concerning, characterized by negative revenue growth (-16.5%) and a severe collapse in earnings (-98.1% YoY). While the balance sheet is exceptionally strong with very low debt and high liquidity, the core business is currently unprofitable at the operating level. The investment case relies on a turnaround or a catalyst to realize the analyst target price of $22.85.

Strengths
Strong liquidity with a Current Ratio of 4.96
Very low leverage (Debt/Equity of 0.08)
Trading at a significant discount to Graham Number ($20.72)
Risks
Severe earnings contraction (-98.1% YoY)
Negative operating margin (-13.16%) indicating core business losses
Declining revenue growth (-16.5% YoY)
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

HCM vs JNJ: Head-to-Head Comparison

This page compares HUTCHMED (China) Limited (HCM) 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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