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ISRG vs JNJ

ISRG
Intuitive Surgical, Inc.
NEUTRAL
Price
$465.60
Market Cap
$165.37B
Sector
Healthcare
AI Confidence
85%
JNJ
Johnson & Johnson
NEUTRAL
Price
$237.96
Market Cap
$573.46B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
ISRG
59.16
JNJ
21.55
Forward P/E
ISRG
40.75
JNJ
18.9
P/B Ratio
ISRG
9.28
JNJ
7.03
P/S Ratio
ISRG
16.43
JNJ
6.09
EV/EBITDA
ISRG
44.88
JNJ
17.81

Profitability

Gross Margin
ISRG
66.0%
JNJ
68.08%
Operating Margin
ISRG
30.15%
JNJ
23.97%
Profit Margin
ISRG
28.38%
JNJ
28.46%
ROE
ISRG
16.69%
JNJ
35.03%
ROA
ISRG
9.39%
JNJ
8.68%

Growth

Revenue Growth
ISRG
18.8%
JNJ
9.1%
Earnings Growth
ISRG
16.6%
JNJ
48.6%

Financial Health

Debt/Equity
ISRG
0.01
JNJ
0.6
Current Ratio
ISRG
4.88
JNJ
1.03
Quick Ratio
ISRG
3.77
JNJ
0.69

Dividends

Dividend Yield
ISRG
--
JNJ
2.19%
Payout Ratio
ISRG
0.0%
JNJ
46.6%

AI Verdict

ISRG NEUTRAL

ISRG exhibits a stable deterministic health profile with a Piotroski F-Score of 4/9 and an exceptionally strong balance sheet (Debt/Equity 0.01). While the company is a fundamental powerhouse with 66% gross margins and consistent earnings beats, it trades at a massive premium to its Graham Number ($94.28) and Intrinsic Value ($232.16). The disconnect between the high valuation (P/E 59.16) and the current price suggests the stock is priced for perfection, leaving little room for error despite strong 18.8% revenue growth.

Strengths
Near-zero debt profile (Debt/Equity 0.01) providing immense financial flexibility
Exceptional profitability with 66% gross margins and 28.38% profit margins
Consistent track record of earnings surprises (3/4 recent quarters beat estimates)
Risks
Extreme valuation premium (P/E 59.16, P/S 16.43) relative to historical norms
High PEG ratio (2.41) indicating the price is outstripping earnings growth
Bearish insider sentiment with 7 sell transactions and 0 buys in the last 6 months
JNJ NEUTRAL

JNJ presents a dichotomy between strong profitability and deteriorating fundamental health, evidenced by a weak Piotroski F-Score of 3/9. While the company maintains an impressive ROE of 35.03% and a consistent history of earnings beats, the current price of $237.96 trades at a significant premium to its Graham Number of $91.72. Growth remains robust on a YoY basis, but bearish insider sentiment and a very weak technical trend (10/100) suggest immediate headwinds. The stock is fundamentally sound in terms of earnings power but shows signs of operational inefficiency or declining quality in its deterministic health metrics.

Strengths
Exceptional Return on Equity (ROE) of 35.03%
Strong profit margins (28.46%) and gross margins (68.08%)
Consistent earnings beat track record over 25 quarters
Risks
Weak Piotroski F-Score (3/9) indicating declining fundamental health
Bearish insider activity with $58.35M in net sales and zero buys
Low liquidity indicated by a Quick Ratio of 0.69

Compare Another Pair

ISRG vs JNJ: Head-to-Head Comparison

This page compares Intuitive Surgical, Inc. (ISRG) 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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