WallStSmart

Clover Health Investments Corp (CLOV)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 3855% more annual revenue ($97.93B vs $2.48B). JNJ leads profitability with a 21.5% profit margin vs -0.7%. JNJ earns a higher WallStSmart Score of 59/100 (C).

CLOV

Hold

38

out of 100

Grade: F

Growth: 8.0Profit: 2.5Value: 6.7Quality: 4.3
Piotroski: 2/9Altman Z: -1.87

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CLOVUndervalued (+71.8%)

Margin of Safety

+71.8%

Fair Value

$7.26

Current Price

$4.82

$2.44 discount

UndervaluedFair: $7.26Overvalued
JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$266.38

$125.81 premium

UndervaluedFair: $140.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CLOV1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
55.6%10/10

Revenue surging 55.6% year-over-year

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$640.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

CLOV4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Operating MarginProfitability
3.8%3/10

Operating margin of 3.8%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-16.8%2/10

ROE of -16.8% — below average capital efficiency

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : CLOV

The strongest argument for CLOV centers on Revenue Growth. Revenue growth of 55.6% demonstrates continued momentum.

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 29.2%.

Bear Case : CLOV

The primary concerns for CLOV are EPS Growth, Operating Margin, Piotroski F-Score.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

CLOV profiles as a hypergrowth stock while JNJ is a mature play — different risk/reward profiles.

CLOV carries more volatility with a beta of 2.48 — expect wider price swings.

CLOV is growing revenue faster at 55.6% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 38/100), backed by strong 21.5% margins. CLOV offers better value entry with a 71.8% margin of safety. 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.

Clover Health Investments Corp

HEALTHCARE · HEALTHCARE PLANS · USA

Clover Health Investments, Corp. The company is headquartered in Franklin, Tennessee.

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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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