Quest Diagnostics Incorporated (DGX)vsJohnson & Johnson (JNJ)
DGX
Quest Diagnostics Incorporated
$250.81
-0.40%
HEALTHCARE · Cap: $27.11B
JNJ
Johnson & Johnson
$266.19
-1.62%
HEALTHCARE · Cap: $657.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 739% more annual revenue ($99.33B vs $11.84B). JNJ leads profitability with a 16.2% profit margin vs 9.5%. DGX appears more attractively valued with a PEG of 1.58. DGX earns a higher WallStSmart Score of 64/100 (C+).
DGX
Buy64
out of 100
Grade: C+
JNJ
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-87.2%
Fair Value
$111.82
Current Price
$250.81
$138.99 premium
Margin of Safety
-89.3%
Fair Value
$144.28
Current Price
$266.19
$121.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 28.7% YoY
Mega-cap, among the largest globally
Strong operational efficiency at 25.7%
Generating 6.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 95.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : DGX
The strongest argument for DGX centers on EPS Growth.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.7%.
Bear Case : DGX
The primary concerns for DGX are PEG Ratio.
Bear Case : JNJ
The primary concerns for JNJ are Piotroski F-Score, PEG Ratio, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.
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 0.54 — expect wider price swings.
DGX is growing revenue faster at 10.0% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
DGX scores higher overall (64/100 vs 54/100). 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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