[1] Why Are We Comparing Johnson & Johnson And Intel?
We compare stocks which share one or more similar characteristicsThis is because the decision to invest often come down to finding the best stocks within the ambit of certain characteristics that suit an investment styleWe compare Johnson & Johnson vs. Intel because they both have similar operating income. The size of profits can matter as larger profits can imply greater market power
[2] How Do We Arrive At A Decision?
We favor stocks that offer meaningfully greater expected return in the next 3 yearsThese returns are calculated based on our revenue forecast and Price to Sales Ratio (P/S) scenarios consideredSimilar Price To Sales Ratio (P/S) scenarios are considered for both stocks and each scenario is weighted equally for a given stock
[3] How Do We Forecast Revenue?
We have different methodologies for companies negatively impacted by Covid, and for companies not impacted or positively impacted by CovidDifferent methodologies are essential to capture recovery in case of negative impactFor companies negatively impacted by covid, we consider quarterly revenue recovery trajectory to forecast recovery to pre-covid revenue run rate, and beyond recovery point, we apply average annual growth observed in 3 years prior to covid to simulate return to normal conditionsFor companies registering positive revenue growth during covid, we consider average annual growth prior to covid with certain weightage to growth during covid and last 12 months
[4] Can I See More Such Comparisons For Johnson & Johnson And Intel Peers
Here are some comparisons that you may find useful for Johnson & Johnson and IntelJohnson & Johnson vs. Merck: Industry Competitors, But Merck Is A Better BetJohnson & Johnson vs. Pfizer: Industry Competitors, Similar BetsJohnson & Johnson vs. Merck: Industry Competitors, Similar BetsIntel vs. NVIDIA: With Return Forecast Of 25%, Intel Is A Better BetIntel vs Avago Technologies: Which Stock Is A Better Investment? Find all such comparisons on Johnson & Johnson Peer Comparisons and Intel Peer Comparisons