Johnson & Johnson (JNJ)vsTenet Healthcare Corporation (THC)
JNJ
Johnson & Johnson
$259.24
+0.88%
HEALTHCARE · Cap: $614.36B
THC
Tenet Healthcare Corporation
$262.13
+2.14%
HEALTHCARE · Cap: $20.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 349% more annual revenue ($97.93B vs $21.81B). JNJ leads profitability with a 21.5% profit margin vs 10.3%. THC appears more attractively valued with a PEG of 1.85. THC earns a higher WallStSmart Score of 74/100 (B).
JNJ
Buy57
out of 100
Grade: C
THC
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.8%
Fair Value
$139.37
Current Price
$259.24
$119.87 premium
Intrinsic value data unavailable for THC.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 48 in profit
Earnings expanding 213.4% YoY
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 0.9%
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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 : THC
The strongest argument for THC centers on P/E Ratio, Return on Equity, EPS Growth.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : THC
The primary concerns for THC are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.84 is elevated, increasing financial risk.
Key Dynamics to Monitor
JNJ profiles as a mature stock while THC is a value play — different risk/reward profiles.
THC carries more volatility with a beta of 1.27 — expect wider price swings.
THC is growing revenue faster at 6.8% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
THC scores higher overall (74/100 vs 57/100). Both earn "Strong 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 →Tenet Healthcare Corporation
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.
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