WallStSmart

Quest Diagnostics Incorporated (DGX)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 754% more annual revenue ($96.36B vs $11.28B). JNJ leads profitability with a 21.8% profit margin vs 9.1%. DGX appears more attractively valued with a PEG of 1.49. DGX earns a higher WallStSmart Score of 63/100 (C+).

DGX

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 6.0Value: 4.7Quality: 5.3
Piotroski: 2/9Altman Z: 2.29

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGXSignificantly Overvalued (-26.0%)

Margin of Safety

-26.0%

Fair Value

$166.17

Current Price

$189.13

$22.96 premium

UndervaluedFair: $166.17Overvalued
JNJSignificantly Overvalued (-40.3%)

Margin of Safety

-40.3%

Fair Value

$160.72

Current Price

$224.62

$63.90 premium

UndervaluedFair: $160.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DGX1 strengths · Avg: 8.0/10
Price/BookValuation
2.9x8/10

Reasonable price relative to book value

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$546.90B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

Areas to Watch

DGX1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.952/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : DGX

The strongest argument for DGX centers on Price/Book. PEG of 1.49 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 21.8% and operating margin at 27.4%.

Bear Case : DGX

The primary concerns for DGX are Piotroski F-Score.

Bear Case : JNJ

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

Key Dynamics to Monitor

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

DGX carries more volatility with a beta of 0.65 — expect wider price swings.

JNJ is growing revenue faster at 9.9% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

DGX scores higher overall (63/100 vs 59/100). Both earn "Buy" and "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.

Quest Diagnostics Incorporated

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Quest Diagnostics is an American clinical laboratory. A Fortune 500 company, Quest operates in the United States, Puerto Rico, Mexico, and Brazil. Quest also maintains collaborative agreements with various hospitals and clinics across the globe.

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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