WallStSmart

Bausch Health Companies Inc (BHC)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 818% more annual revenue ($94.19B vs $10.27B). JNJ leads profitability with a 28.5% profit margin vs 1.5%. BHC appears more attractively valued with a PEG of 0.01. JNJ earns a higher WallStSmart Score of 71/100 (B).

BHC

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.5
Piotroski: 4/9Altman Z: 0.21

JNJ

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 9.0Value: 6.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BHCUndervalued (+69.1%)

Margin of Safety

+69.1%

Fair Value

$19.66

Current Price

$5.02

$14.64 discount

UndervaluedFair: $19.66Overvalued
JNJUndervalued (+53.5%)

Margin of Safety

+53.5%

Fair Value

$516.67

Current Price

$240.45

$276.22 discount

UndervaluedFair: $516.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BHC6 strengths · Avg: 9.7/10
PEG RatioValuation
0.0110/10

Growing faster than its price suggests

P/E RatioValuation
11.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
43.6%10/10

Every $100 of equity generates 44 in profit

EPS GrowthGrowth
1368.0%10/10

Earnings expanding 1368.0% YoY

Debt/EquityHealth
-38.2810/10

Conservative balance sheet, low leverage

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

JNJ6 strengths · Avg: 8.8/10
Market CapQuality
$579.46B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.0%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
28.5%9/10

Keeps 29 of every $100 in revenue as profit

Operating MarginProfitability
24.0%8/10

Strong operational efficiency at 24.0%

EPS GrowthGrowth
48.6%8/10

Earnings expanding 48.6% YoY

Free Cash FlowQuality
$5.47B8/10

Generating 5.5B in free cash flow

Areas to Watch

BHC3 concerns · Avg: 2.7/10
Market CapQuality
$1.86B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
1.5%3/10

1.5% margin — thin

Altman Z-ScoreHealth
0.212/10

Distress zone — elevated risk

JNJ1 concerns · Avg: 4.0/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : BHC

The strongest argument for BHC centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.01 suggests the stock is reasonably priced for its growth.

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 28.5% and operating margin at 24.0%.

Bear Case : BHC

The primary concerns for BHC are Market Cap, Profit Margin, Altman Z-Score. Thin 1.5% margins leave little buffer for downturns.

Bear Case : JNJ

The primary concerns for JNJ are PEG Ratio.

Key Dynamics to Monitor

BHC profiles as a value stock while JNJ is a mature play — different risk/reward profiles.

BHC carries more volatility with a beta of 0.37 — expect wider price swings.

BHC is growing revenue faster at 9.3% — sustainability is the question.

JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (71/100 vs 69/100), backed by strong 28.5% margins. BHC offers better value entry with a 69.1% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Bausch Health Companies Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Bausch Health Companies Inc. develops, manufactures and markets a range of pharmaceutical, medical device and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenterology and dermatology. The company is headquartered in Laval, Canada.

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Johnson & Johnson

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.

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