WallStSmart

Fresenius Medical Care Corporation (FMS)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 398% more annual revenue ($96.36B vs $19.36B). JNJ leads profitability with a 21.8% profit margin vs 4.9%. FMS appears more attractively valued with a PEG of 0.70. JNJ earns a higher WallStSmart Score of 59/100 (C).

FMS

Buy

50

out of 100

Grade: C-

Growth: 2.7Profit: 5.0Value: 9.3Quality: 6.0
Piotroski: 6/9Altman Z: 1.82

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

FMSUndervalued (+76.3%)

Margin of Safety

+76.3%

Fair Value

$101.47

Current Price

$22.03

$79.44 discount

UndervaluedFair: $101.47Overvalued
JNJSignificantly Overvalued (-37.5%)

Margin of Safety

-37.5%

Fair Value

$160.99

Current Price

$221.32

$60.33 premium

UndervaluedFair: $160.99Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FMS3 strengths · Avg: 9.3/10
P/E RatioValuation
11.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

PEG RatioValuation
0.708/10

Growing faster than its price suggests

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$535.63B10/10

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

FMS4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Revenue GrowthGrowth
-5.5%2/10

Revenue declined 5.5%

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.922/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : FMS

The strongest argument for FMS centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.70 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 : FMS

The primary concerns for FMS are Altman Z-Score, Return on Equity, Profit Margin. Thin 4.9% 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

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

FMS carries more volatility with a beta of 0.82 — 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

JNJ scores higher overall (59/100 vs 50/100), backed by strong 21.8% margins. FMS offers better value entry with a 76.3% margin of safety. 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.

Fresenius Medical Care Corporation

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Fresenius Medical Care AG & Co. KGaA provides dialysis care and related dialysis care services in Germany, North America and internationally. The company is headquartered in Bad Homburg, Germany.

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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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