WallStSmart

Johnson & Johnson (JNJ)vsLifestance Health Group Inc (LFST)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 6079% more annual revenue ($97.93B vs $1.58B). JNJ leads profitability with a 21.5% profit margin vs 3.2%. JNJ trades at a lower P/E of 30.9x. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

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

LFST

Hold

48

out of 100

Grade: D+

Growth: 8.7Profit: 4.5Value: 5.7Quality: 7.0
Piotroski: 6/9Altman Z: 1.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$265.58

$125.01 premium

UndervaluedFair: $140.57Overvalued
LFSTUndervalued (+36.0%)

Margin of Safety

+36.0%

Fair Value

$10.83

Current Price

$12.97

$2.14 discount

UndervaluedFair: $10.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

LFST3 strengths · Avg: 9.0/10
EPS GrowthGrowth
1927.0%10/10

Earnings expanding 1927.0% YoY

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
26.1%8/10

Revenue surging 26.1% year-over-year

Areas to Watch

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%

LFST4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.594/10

Distress zone — elevated risk

Return on EquityProfitability
1.6%3/10

ROE of 1.6% — below average capital efficiency

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

P/E RatioValuation
97.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : LFST

The strongest argument for LFST centers on EPS Growth, Debt/Equity, Revenue Growth. Revenue growth of 26.1% demonstrates continued momentum.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Bear Case : LFST

The primary concerns for LFST are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 97.1x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

JNJ profiles as a mature stock while LFST is a growth play — different risk/reward profiles.

LFST carries more volatility with a beta of 1.22 — expect wider price swings.

LFST is growing revenue faster at 26.1% — 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 48/100), backed by strong 21.5% margins. LFST offers better value entry with a 36.0% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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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Lifestance Health Group Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

LifeStance Health Group, Inc., provides outpatient mental health services to children, adolescents, adults and geriatrics. The company is headquartered in Scottsdale, Arizona.

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