WallStSmart

Henry Schein Inc (HSIC)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 620% more annual revenue ($97.93B vs $13.60B). JNJ leads profitability with a 21.5% profit margin vs 3.0%. HSIC appears more attractively valued with a PEG of 1.79. JNJ earns a higher WallStSmart Score of 59/100 (C).

HSIC

Buy

55

out of 100

Grade: C-

Growth: 6.0Profit: 5.5Value: 6.7Quality: 5.0
Piotroski: 2/9Altman Z: 2.37

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HSICUndervalued (+46.6%)

Margin of Safety

+46.6%

Fair Value

$153.02

Current Price

$88.36

$64.66 discount

UndervaluedFair: $153.02Overvalued
JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$265.58

$125.01 premium

UndervaluedFair: $140.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSIC0 strengths · Avg: 0/10

No standout strengths identified

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$640.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

HSIC4 concerns · Avg: 3.5/10
PEG RatioValuation
1.794/10

Expensive relative to growth rate

P/E RatioValuation
25.9x4/10

Moderate valuation

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Debt/EquityHealth
1.213/10

Elevated debt levels

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : HSIC

HSIC has a balanced fundamental profile.

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.5% and operating margin at 29.2%.

Bear Case : HSIC

The primary concerns for HSIC are PEG Ratio, P/E Ratio, Profit Margin. Thin 3.0% 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

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

HSIC carries more volatility with a beta of 0.81 — expect wider price swings.

HSIC is growing revenue faster at 6.7% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 55/100), backed by strong 21.5% margins. HSIC offers better value entry with a 46.6% 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.

Henry Schein Inc

HEALTHCARE · MEDICAL DISTRIBUTION · USA

Henry Schein, Inc. is an American distributor of health care products and services with a presence in 32 countries.

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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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