WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1722% more annual revenue ($96.36B vs $5.29B). JNJ leads profitability with a 21.8% profit margin vs 3.6%. PACS appears more attractively valued with a PEG of 1.00. JNJ earns a higher WallStSmart Score of 59/100 (C).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

PACS

Buy

58

out of 100

Grade: C

Growth: 8.7Profit: 6.0Value: 8.0Quality: 3.5
Piotroski: 5/9Altman Z: 1.32
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-38.5%)

Margin of Safety

-38.5%

Fair Value

$160.72

Current Price

$221.32

$60.60 premium

UndervaluedFair: $160.72Overvalued
PACSUndervalued (+72.9%)

Margin of Safety

+72.9%

Fair Value

$144.37

Current Price

$33.59

$110.78 discount

UndervaluedFair: $144.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$535.63B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

PACS3 strengths · Avg: 9.0/10
EPS GrowthGrowth
57.2%10/10

Earnings expanding 57.2% YoY

Return on EquityProfitability
23.0%9/10

Every $100 of equity generates 23 in profit

PEG RatioValuation
1.008/10

Growing faster than its price suggests

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.922/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

PACS4 concerns · Avg: 2.8/10
P/E RatioValuation
27.7x4/10

Moderate valuation

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Free Cash FlowQuality
$-15.97M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.322/10

Distress zone — elevated risk

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 21.8% and operating margin at 27.4%.

Bull Case : PACS

The strongest argument for PACS centers on EPS Growth, Return on Equity, PEG Ratio. Revenue growth of 12.4% demonstrates continued momentum. PEG of 1.00 suggests the stock is reasonably priced for its growth.

Bear Case : JNJ

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

Bear Case : PACS

The primary concerns for PACS are P/E Ratio, Profit Margin, Free Cash Flow. Debt-to-equity of 4.93 is elevated, increasing financial risk. Thin 3.6% 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 0.26 — expect wider price swings.

PACS is growing revenue faster at 12.4% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 58/100), backed by strong 21.8% margins. PACS offers better value entry with a 72.9% 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.

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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PACS Group, Inc.

HEALTHCARE · MEDICAL CARE FACILITIES · USA

PACS Group, Inc. is a prominent technology solutions provider dedicated to improving operational efficiency across diverse industries through innovative software and hardware systems. The company emphasizes research and development, positioning itself to leverage emerging technological trends and drive digital transformation. With robust strategic partnerships and a significant market presence, PACS Group is well-equipped to enhance its competitive advantage, making it an attractive investment opportunity for institutional investors seeking growth in the rapidly evolving technology landscape.

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