WallStSmart

Bausch Health Companies Inc (BHC)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 802% more annual revenue ($97.93B vs $10.85B). JNJ leads profitability with a 21.5% profit margin vs -10.1%. BHC appears more attractively valued with a PEG of 0.01. BHC earns a higher WallStSmart Score of 70/100 (B).

BHC

Strong Buy

70

out of 100

Grade: B

Growth: 7.3Profit: 7.0Value: 6.7Quality: 5.5
Piotroski: 4/9Altman Z: 0.22

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

Intrinsic value data unavailable for BHC.

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

BHC5 strengths · Avg: 9.6/10
PEG RatioValuation
0.0110/10

Growing faster than its price suggests

Return on EquityProfitability
43.6%10/10

Every $100 of equity generates 44 in profit

EPS GrowthGrowth
70.4%10/10

Earnings expanding 70.4% YoY

Debt/EquityHealth
-11.7310/10

Conservative balance sheet, low leverage

Operating MarginProfitability
27.2%8/10

Strong operational efficiency at 27.2%

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

BHC2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.222/10

Distress zone — elevated risk

Profit MarginProfitability
-10.1%1/10

Currently unprofitable

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 : BHC

The strongest argument for BHC centers on PEG Ratio, Return on Equity, EPS Growth. Revenue growth of 12.7% demonstrates continued momentum. PEG of 0.01 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 : BHC

The primary concerns for BHC are Altman Z-Score, Profit Margin.

Bear Case : JNJ

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

Key Dynamics to Monitor

BHC profiles as a turnaround stock while JNJ is a mature play — different risk/reward profiles.

BHC carries more volatility with a beta of 0.37 — expect wider price swings.

BHC is growing revenue faster at 12.7% — sustainability is the question.

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

Bottom Line

BHC scores higher overall (70/100 vs 59/100) and 12.7% revenue growth. 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.

Bausch Health Companies Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Bausch Health Companies Inc. develops, manufactures and markets a range of pharmaceutical, medical device and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenterology and dermatology. The company is headquartered in Laval, Canada.

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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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