Johnson & Johnson (JNJ)vsLaboratory Corporation of America Holdings (LH)
JNJ
Johnson & Johnson
$271.17
+0.86%
HEALTHCARE · Cap: $615.87B
LH
Laboratory Corporation of America Holdings
$360.25
+8.78%
HEALTHCARE · Cap: $26.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 592% more annual revenue ($99.33B vs $14.35B). JNJ leads profitability with a 16.2% profit margin vs 7.0%. LH appears more attractively valued with a PEG of 1.21. LH earns a higher WallStSmart Score of 65/100 (C+).
JNJ
Buy57
out of 100
Grade: C
LH
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$271.17
$127.05 premium
Margin of Safety
-33.9%
Fair Value
$216.49
Current Price
$360.25
$143.76 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Earnings expanding 28.2% YoY
Areas to Watch
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
Moderate valuation
7.0% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull 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 25.1%.
Bull Case : LH
The strongest argument for LH centers on EPS Growth. PEG of 1.21 suggests the stock is reasonably priced for its growth.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : LH
The primary concerns for LH are P/E Ratio, Profit Margin.
Key Dynamics to Monitor
JNJ profiles as a mature stock while LH is a value play — different risk/reward profiles.
LH carries more volatility with a beta of 0.85 — expect wider price swings.
JNJ is growing revenue faster at 5.9% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
LH scores higher overall (65/100 vs 57/100). 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.
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.
Visit Website →Laboratory Corporation of America Holdings
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Laboratory Corporation of America Holdings, more commonly known as Labcorp, is an American company headquartered in Burlington, North Carolina. It operates one of the largest clinical laboratory networks in the world, with a United States network of 36 primary laboratories.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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