Quest Diagnostics Incorporated (DGX)vsJohnson & Johnson (JNJ)
DGX
Quest Diagnostics Incorporated
$189.13
-0.90%
HEALTHCARE · Cap: $21.33B
JNJ
Johnson & Johnson
$224.62
-0.41%
HEALTHCARE · Cap: $546.90B
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
Buy63
out of 100
Grade: C+
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-26.0%
Fair Value
$166.17
Current Price
$189.13
$22.96 premium
Margin of Safety
-40.3%
Fair Value
$160.72
Current Price
$224.62
$63.90 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Areas to Watch
Weak financial health signals
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull 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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