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JNJ vs NEPH

JNJ
Johnson & Johnson
NEUTRAL
Price
$237.96
Market Cap
$573.46B
Sector
Healthcare
AI Confidence
85%
NEPH
Nephros, Inc.
BEARISH
Price
$2.88
Market Cap
$30.7M
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
JNJ
21.55
NEPH
26.18
Forward P/E
JNJ
18.9
NEPH
22.15
P/B Ratio
JNJ
7.03
NEPH
3.01
P/S Ratio
JNJ
6.09
NEPH
1.63
EV/EBITDA
JNJ
17.81
NEPH
20.48

Profitability

Gross Margin
JNJ
68.08%
NEPH
61.87%
Operating Margin
JNJ
23.97%
NEPH
0.38%
Profit Margin
JNJ
28.46%
NEPH
6.35%
ROE
JNJ
35.03%
NEPH
12.71%
ROA
JNJ
8.68%
NEPH
5.76%

Growth

Revenue Growth
JNJ
9.1%
NEPH
22.2%
Earnings Growth
JNJ
48.6%
NEPH
-82.4%

Financial Health

Debt/Equity
JNJ
0.6
NEPH
0.1
Current Ratio
JNJ
1.03
NEPH
4.06
Quick Ratio
JNJ
0.69
NEPH
2.82

Dividends

Dividend Yield
JNJ
2.19%
NEPH
--
Payout Ratio
JNJ
46.6%
NEPH
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
NEPH BEARISH

NEPH presents a contradictory profile with a stable Piotroski F-Score of 4/9 and a very strong balance sheet, yet it is fundamentally overvalued. The current price of $2.88 significantly exceeds both the Graham Number ($1.54) and the Intrinsic Value ($0.77), suggesting a speculative premium. While revenue growth remains positive at 22.2%, the catastrophic collapse in earnings growth (-82.40% YoY) and a bearish technical trend (0/100) outweigh the analyst target of $7.00.

Strengths
Very low leverage with a Debt/Equity ratio of 0.10
Excellent short-term liquidity (Current Ratio 4.06)
Strong Gross Margins at 61.87%
Risks
Severe earnings contraction (-82.40% YoY)
Significant overvaluation relative to Graham and Intrinsic value models
Razor-thin operating margins (0.38%) indicating high overhead

Compare Another Pair

JNJ vs NEPH: Head-to-Head Comparison

This page compares Johnson & Johnson (JNJ) and Nephros, Inc. (NEPH) 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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