WallStSmart

Addus HomeCare Corporation (ADUS)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 6533% more annual revenue ($97.93B vs $1.48B). JNJ leads profitability with a 21.5% profit margin vs 7.1%. ADUS appears more attractively valued with a PEG of 1.05. ADUS earns a higher WallStSmart Score of 62/100 (C+).

ADUS

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 5.5Value: 5.3Quality: 8.0
Piotroski: 5/9Altman Z: 3.71

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADUSOvervalued (-6.2%)

Margin of Safety

-6.2%

Fair Value

$106.14

Current Price

$117.09

$10.95 premium

UndervaluedFair: $106.14Overvalued
JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$265.58

$125.01 premium

UndervaluedFair: $140.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADUS4 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.7110/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

EPS GrowthGrowth
24.2%8/10

Earnings expanding 24.2% YoY

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$640.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

ADUS1 concerns · Avg: 3.0/10
Profit MarginProfitability
7.1%3/10

7.1% margin — thin

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : ADUS

The strongest argument for ADUS centers on Debt/Equity, Altman Z-Score, Price/Book. PEG of 1.05 suggests the stock is reasonably priced for its growth.

Bull 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%.

Bear Case : ADUS

The primary concerns for ADUS are Profit Margin.

Bear Case : JNJ

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

Key Dynamics to Monitor

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

ADUS carries more volatility with a beta of 0.86 — expect wider price swings.

ADUS is growing revenue faster at 8.0% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

ADUS scores higher overall (62/100 vs 59/100). 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.

Addus HomeCare Corporation

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Addus HomeCare Corporation, provides personal care services to the elderly, the chronically ill, the disabled, and people who are at risk of hospitalization or institutionalization in the United States. The company is headquartered in Frisco, Texas.

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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