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JNJ vs MESO

JNJ
Johnson & Johnson
NEUTRAL
Price
$237.96
Market Cap
$573.46B
Sector
Healthcare
AI Confidence
85%
MESO
Mesoblast Limited
BEARISH
Price
$14.70
Market Cap
$1.92B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
JNJ
21.55
MESO
--
Forward P/E
JNJ
18.9
MESO
-210.0
P/B Ratio
JNJ
7.03
MESO
32.96
P/S Ratio
JNJ
6.09
MESO
29.42
EV/EBITDA
JNJ
17.81
MESO
-294.48

Profitability

Gross Margin
JNJ
68.08%
MESO
-35.53%
Operating Margin
JNJ
23.97%
MESO
-55.16%
Profit Margin
JNJ
28.46%
MESO
-144.33%
ROE
JNJ
35.03%
MESO
-18.22%
ROA
JNJ
8.68%
MESO
-6.16%

Growth

Revenue Growth
JNJ
9.1%
MESO
1526.8%
Earnings Growth
JNJ
48.6%
MESO
--

Financial Health

Debt/Equity
JNJ
0.6
MESO
0.24
Current Ratio
JNJ
1.03
MESO
1.58
Quick Ratio
JNJ
0.69
MESO
1.35

Dividends

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

AI Verdict

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
MESO BEARISH

MESO presents a high-risk profile characterized by a stable but mediocre Piotroski F-Score of 4/9 and a complete absence of deterministic value markers like the Graham Number. While revenue growth is explosive (1526.8%), the company suffers from a catastrophic negative gross margin of -35.53%, meaning it loses money on its core product delivery. The valuation is extreme, with a Price-to-Book ratio of 32.96 and a Price-to-Sales ratio of 29.42, indicating the stock is priced for perfection despite consistent quarterly losses over several years.

Strengths
Explosive year-over-year revenue growth of 1526.80%
Low Debt-to-Equity ratio (0.24) indicating minimal leverage
Healthy short-term liquidity with a Current Ratio of 1.58
Risks
Negative Gross Margin (-35.53%) indicates a fundamentally flawed cost structure
Extreme valuation multiples (P/B 32.96, P/S 29.42) far exceeding industry norms
Chronic lack of profitability with negative earnings across 25 consecutive quarters

Compare Another Pair

JNJ vs MESO: Head-to-Head Comparison

This page compares Johnson & Johnson (JNJ) and Mesoblast Limited (MESO) 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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