WallStSmart

Johnson & Johnson (JNJ)vsPACS Group, Inc. (PACS)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1689% more annual revenue ($99.33B vs $5.55B). JNJ leads profitability with a 16.2% profit margin vs 4.8%. PACS appears more attractively valued with a PEG of 1.21. PACS earns a higher WallStSmart Score of 58/100 (C).

JNJ

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

PACS

Buy

58

out of 100

Grade: C

Growth: 8.7Profit: 6.0Value: 5.7Quality: 3.5
Piotroski: 5/9Altman Z: 1.35

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$657.68B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

PACS2 strengths · Avg: 9.5/10
EPS GrowthGrowth
51.6%10/10

Earnings expanding 51.6% YoY

Return on EquityProfitability
23.5%9/10

Every $100 of equity generates 24 in profit

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
Price/BookValuation
8.2x4/10

Trading at 8.2x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.072/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

PACS4 concerns · Avg: 2.5/10
P/E RatioValuation
28.0x4/10

Moderate valuation

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Altman Z-ScoreHealth
1.352/10

Distress zone — elevated risk

Debt/EquityHealth
2.831/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 25.7%.

Bull Case : PACS

The strongest argument for PACS centers on EPS Growth, Return on Equity. PEG of 1.21 suggests the stock is reasonably priced for its growth.

Bear Case : JNJ

The primary concerns for JNJ are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.

Bear Case : PACS

The primary concerns for PACS are P/E Ratio, Profit Margin, Altman Z-Score. Debt-to-equity of 2.83 is elevated, increasing financial risk. Thin 4.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

JNJ carries more volatility with a beta of 0.21 — expect wider price swings.

PACS is growing revenue faster at 9.1% — sustainability is the question.

JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

PACS scores higher overall (58/100 vs 54/100). 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 →

PACS Group, Inc.

HEALTHCARE · MEDICAL CARE FACILITIES · USA

PACS Group, Inc. is a prominent technology solutions provider dedicated to improving operational efficiency across various sectors through innovative software and hardware systems. The company prioritizes research and development to leverage emerging technological trends and drive digital transformation initiatives. With a strong portfolio of strategic collaborations and a solid market presence, PACS Group is well-positioned for sustainable growth, making it an attractive investment proposition for institutional investors seeking to participate in the rapidly evolving technology landscape.

Visit Website →

Want to dig deeper into these stocks?