Cardinal Health Inc (CAH)vsJohnson & Johnson (JNJ)
CAH
Cardinal Health Inc
$227.19
-0.84%
HEALTHCARE · Cap: $53.52B
JNJ
Johnson & Johnson
$255.88
-3.63%
HEALTHCARE · Cap: $615.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Cardinal Health Inc generates 156% more annual revenue ($250.74B vs $97.93B). JNJ leads profitability with a 21.5% profit margin vs 0.6%. CAH appears more attractively valued with a PEG of 1.42. JNJ earns a higher WallStSmart Score of 57/100 (C).
CAH
Hold47
out of 100
Grade: D+
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-35.9%
Fair Value
$171.15
Current Price
$227.19
$56.04 premium
Intrinsic value data unavailable for JNJ.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Generating 1.7B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 28.6%
Generating 3.4B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
ROE of 0.0% — below average capital efficiency
0.6% margin — thin
Operating margin of 1.4%
Moderate valuation
Expensive relative to growth rate
Earnings declined 1.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : CAH
The strongest argument for CAH centers on Debt/Equity, Altman Z-Score, Market Cap. Revenue growth of 11.0% demonstrates continued momentum. PEG of 1.42 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 21.5% and operating margin at 28.6%.
Bear Case : CAH
The primary concerns for CAH are P/E Ratio, Return on Equity, Profit Margin. Thin 0.6% margins leave little buffer for downturns.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
CAH profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
CAH carries more volatility with a beta of 0.49 — expect wider price swings.
CAH is growing revenue faster at 11.0% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 47/100), backed by strong 21.5% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cardinal Health Inc
HEALTHCARE · MEDICAL DISTRIBUTION · USA
Cardinal Health, Inc. is an American multinational health care services company.
Visit Website →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.
Visit Website →Compare with Other MEDICAL DISTRIBUTION Stocks
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