Johnson & Johnson (JNJ)vsU.S. Physical Therapy, Inc. (USPH)
JNJ
Johnson & Johnson
$224.26
+1.28%
HEALTHCARE · Cap: $535.63B
USPH
U.S. Physical Therapy, Inc.
$59.42
+0.22%
HEALTHCARE · Cap: $904.30M
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 12134% more annual revenue ($96.36B vs $787.68M). JNJ leads profitability with a 21.8% profit margin vs 4.4%. USPH appears more attractively valued with a PEG of 2.12. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
USPH
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.5%
Fair Value
$160.99
Current Price
$224.26
$63.27 premium
Margin of Safety
+26.4%
Fair Value
$119.68
Current Price
$59.42
$60.26 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
Reasonable price relative to book value
Earnings expanding 23.6% YoY
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 6.8% — below average capital efficiency
4.4% margin — thin
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 : USPH
The strongest argument for USPH centers on Price/Book, EPS Growth.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : USPH
The primary concerns for USPH are PEG Ratio, Market Cap, Return on Equity. A P/E of 118.8x leaves little room for execution misses. Thin 4.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
JNJ profiles as a mature stock while USPH is a value play — different risk/reward profiles.
USPH carries more volatility with a beta of 1.20 — 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
JNJ scores higher overall (59/100 vs 54/100), backed by strong 21.8% margins. USPH offers better value entry with a 26.4% 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.
Visit Website →U.S. Physical Therapy, Inc.
HEALTHCARE · MEDICAL CARE FACILITIES · USA
US Physical Therapy, Inc. operates outpatient physical therapy clinics that provide preoperative and postoperative care and treatment for orthopedic-related disorders, sports-related injuries, preventive care, injured worker rehabilitation, and neurology-related injuries. The company is headquartered in Houston, Texas.
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