` Comparison: RO vs JNJ - Alpha Spread

RO
vs
JNJ

Over the past 12 months, RO has underperformed JNJ, delivering a return of +27% compared to the JNJ's +59% growth.

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RO
JNJ
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Valuation Comparison

RO Intrinsic Value
456.51 CHF
Undervaluation 28%
Intrinsic Value
Price CHf327.6
JNJ Intrinsic Value
176.58 USD
Overvaluation 27%
Intrinsic Value
Price $241.31
Company Last Price Intrinsic Value DCF Value Multiples-Based Value Wall St Target
Roche Holding AG
SIX:RO
327.6 CHF
Johnson & Johnson
NYSE:JNJ
241.31 USD
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
RO, JNJ

Revenue
www.alphaspread.com
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Roche Holding AG
Revenue
Johnson & Johnson
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
RO, JNJ

Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Roche Holding AG
SIX:RO
Johnson & Johnson
NYSE:JNJ
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What is Free Cash Flow?

Gross Margin

RO
73.9%
JNJ
67.9%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Johnson & Johnson

Operating Margin

RO
35%
JNJ
34.8%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Johnson & Johnson

Net Margin

RO
20.9%
JNJ
28.5%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Johnson & Johnson

FCF Margin

RO
17.7%
JNJ
20.9%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Johnson & Johnson

ROE

RO
39.3%
JNJ
35.3%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Johnson & Johnson

ROA

RO
12.7%
JNJ
14.2%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Johnson & Johnson

ROIC

RO
19.4%
JNJ
17.1%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Johnson & Johnson

ROCE

RO
29.2%
JNJ
24.2%
LTM 3Y Avg 5Y Avg 10Y Avg
Roche Holding AG
Johnson & Johnson

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
RO, JNJ

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Performance Gap
RO, JNJ

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RO
JNJ
Difference
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Performance By Year
RO, JNJ

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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett