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JNJ vs RYTM

JNJ
Johnson & Johnson
NEUTRAL
Price
$237.96
Market Cap
$573.46B
Sector
Healthcare
AI Confidence
85%
RYTM
Rhythm Pharmaceuticals, Inc.
NEUTRAL
Price
$88.69
Market Cap
$6.06B
Sector
Healthcare
AI Confidence
75%

Valuation

P/E Ratio
JNJ
21.55
RYTM
--
Forward P/E
JNJ
18.9
RYTM
-227.17
P/B Ratio
JNJ
7.03
RYTM
42.87
P/S Ratio
JNJ
6.09
RYTM
31.92
EV/EBITDA
JNJ
17.81
RYTM
-31.0

Profitability

Gross Margin
JNJ
68.08%
RYTM
89.73%
Operating Margin
JNJ
23.97%
RYTM
-82.2%
Profit Margin
JNJ
28.46%
RYTM
-103.57%
ROE
JNJ
35.03%
RYTM
-90.45%
ROA
JNJ
8.68%
RYTM
-27.51%

Growth

Revenue Growth
JNJ
9.1%
RYTM
36.9%
Earnings Growth
JNJ
48.6%
RYTM
--

Financial Health

Debt/Equity
JNJ
0.6
RYTM
0.42
Current Ratio
JNJ
1.03
RYTM
4.41
Quick Ratio
JNJ
0.69
RYTM
3.92

Dividends

Dividend Yield
JNJ
2.19%
RYTM
--
Payout Ratio
JNJ
46.6%
RYTM
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
RYTM NEUTRAL

RYTM presents a classic high-growth biotech profile with a Piotroski F-Score of 4/9, indicating stable but not strong financial health. While the company boasts impressive gross margins (89.73%) and strong revenue growth (36.9%), it remains deeply unprofitable with a profit margin of -103.57%. The valuation is extremely stretched, evidenced by a Price/Sales ratio of 31.92 and a Price/Book of 42.87, suggesting the market has priced in significant future success. Despite a 'strong_buy' analyst consensus and a high target price, bearish insider activity and recent earnings misses temper the outlook.

Strengths
Exceptional gross margins (89.73%) indicating high product value
Strong top-line growth with 36.9% YoY revenue increase
Robust short-term liquidity with a current ratio of 4.41
Risks
Extreme valuation premiums (P/S 31.92, P/B 42.87)
Persistent net losses and negative operating margins (-82.20%)
Bearish insider sentiment with multiple sales by the CFO and officers

Compare Another Pair

JNJ vs RYTM: Head-to-Head Comparison

This page compares Johnson & Johnson (JNJ) and Rhythm Pharmaceuticals, Inc. (RYTM) 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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