WallStSmart

Johnson & Johnson (JNJ)vsMedline Inc. Class A Common Stock (MDLN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 227% more annual revenue ($97.93B vs $29.94B). JNJ leads profitability with a 21.5% profit margin vs 2.3%. 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: 3.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

MDLN

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 4.0Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 1.70

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

MDLN2 strengths · Avg: 9.0/10
EPS GrowthGrowth
262.0%10/10

Earnings expanding 262.0% YoY

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

MDLN4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.704/10

Distress zone — elevated risk

Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

Profit MarginProfitability
2.3%3/10

2.3% margin — thin

Operating MarginProfitability
0.8%3/10

Operating margin of 0.8%

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 : MDLN

The strongest argument for MDLN centers on EPS Growth, Price/Book. Revenue growth of 11.6% demonstrates continued momentum.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : MDLN

The primary concerns for MDLN are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 42.6x leaves little room for execution misses. Thin 2.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

MDLN is growing revenue faster at 11.6% — sustainability is the question.

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

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

JNJ scores higher overall (59/100 vs 52/100), backed by strong 21.5% margins. 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.

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Medline Inc. Class A Common Stock

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Medline Inc. manufactures med-surg products serving the hospital, surgery centers, physician offices, post-acute facilities, and nursing home sites of care in the United States and Internationally. The company is headquartered in Northfield, Illinois.

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