WallStSmart

Healthcare Services Group Inc (HCSG)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 5102% more annual revenue ($96.36B vs $1.85B). JNJ leads profitability with a 21.8% profit margin vs 3.7%. HCSG appears more attractively valued with a PEG of 1.36. HCSG earns a higher WallStSmart Score of 60/100 (C+).

HCSG

Buy

60

out of 100

Grade: C+

Growth: 6.0Profit: 5.5Value: 7.3Quality: 9.0
Piotroski: 5/9Altman Z: 4.71

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

HCSGUndervalued (+80.8%)

Margin of Safety

+80.8%

Fair Value

$115.76

Current Price

$22.07

$93.69 discount

UndervaluedFair: $115.76Overvalued
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

HCSG4 strengths · Avg: 9.5/10
EPS GrowthGrowth
60.9%10/10

Earnings expanding 60.9% YoY

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

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

HCSG3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.4%4/10

3.4% revenue growth

Market CapQuality
$1.46B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.7%3/10

3.7% margin — thin

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 : HCSG

The strongest argument for HCSG centers on EPS Growth, Debt/Equity, Altman Z-Score. PEG of 1.36 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 : HCSG

The primary concerns for HCSG are Revenue Growth, Market Cap, Profit Margin. Thin 3.7% 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

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

HCSG carries more volatility with a beta of 0.81 — 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

HCSG scores higher overall (60/100 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.

Healthcare Services Group Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Healthcare Services Group, Inc. provides management, administrative, and operational services to the cleaning, laundry, bedding, facility maintenance, and dietary services departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. . The company is headquartered in Bensalem, Pennsylvania.

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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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