Johnson & Johnson (JNJ)vsTenet Healthcare Corporation (THC)
JNJ
Johnson & Johnson
$221.32
-0.53%
HEALTHCARE · Cap: $535.63B
THC
Tenet Healthcare Corporation
$190.38
-1.93%
HEALTHCARE · Cap: $16.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 349% more annual revenue ($96.36B vs $21.45B). JNJ leads profitability with a 21.8% profit margin vs 7.9%. JNJ appears more attractively valued with a PEG of 2.92. THC earns a higher WallStSmart Score of 66/100 (B-).
JNJ
Buy59
out of 100
Grade: C
THC
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.5%
Fair Value
$160.99
Current Price
$221.32
$60.33 premium
Margin of Safety
+78.8%
Fair Value
$1068.55
Current Price
$190.38
$878.17 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 87.6% YoY
Generating 1.5B in free cash flow
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
2.8% revenue growth
Distress zone — elevated risk
7.9% margin — thin
Expensive relative to growth rate
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 21.8% and operating margin at 27.4%.
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 Revenue Growth, Altman Z-Score, Profit Margin.
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 1.30 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
THC scores higher overall (66/100 vs 59/100). 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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