WallStSmart

BrightSpring Health Services, Inc. Common Stock (BTSG)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 646% more annual revenue ($96.36B vs $12.91B). JNJ leads profitability with a 21.8% profit margin vs 1.5%. JNJ trades at a lower P/E of 26.4x. JNJ earns a higher WallStSmart Score of 59/100 (C).

BTSG

Buy

54

out of 100

Grade: C-

Growth: 8.7Profit: 4.5Value: 5.7Quality: 6.0
Piotroski: 5/9Altman Z: 2.62

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BTSGUndervalued (+86.0%)

Margin of Safety

+86.0%

Fair Value

$286.73

Current Price

$48.15

$238.58 discount

UndervaluedFair: $286.73Overvalued
JNJSignificantly Overvalued (-42.0%)

Margin of Safety

-42.0%

Fair Value

$160.13

Current Price

$227.35

$67.22 premium

UndervaluedFair: $160.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BTSG2 strengths · Avg: 9.0/10
EPS GrowthGrowth
338.3%10/10

Earnings expanding 338.3% YoY

Revenue GrowthGrowth
29.3%8/10

Revenue surging 29.3% year-over-year

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.64B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

Areas to Watch

BTSG4 concerns · Avg: 3.0/10
Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
1.5%3/10

1.5% margin — thin

Operating MarginProfitability
3.0%3/10

Operating margin of 3.0%

Debt/EquityHealth
1.483/10

Elevated debt levels

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.4x4/10

Moderate valuation

PEG RatioValuation
2.972/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : BTSG

The strongest argument for BTSG centers on EPS Growth, Revenue Growth. Revenue growth of 29.3% demonstrates continued momentum.

Bull 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%.

Bear Case : BTSG

The primary concerns for BTSG are Return on Equity, Profit Margin, Operating Margin. A P/E of 100.3x leaves little room for execution misses. Thin 1.5% margins leave little buffer for downturns.

Bear Case : JNJ

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

Key Dynamics to Monitor

BTSG profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.

BTSG carries more volatility with a beta of 2.05 — expect wider price swings.

BTSG is growing revenue faster at 29.3% — 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. BTSG offers better value entry with a 86.0% 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.

BrightSpring Health Services, Inc. Common Stock

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

BrightSpring Health Services, Inc. (BTSG) is a prominent provider of home and community-based health services, dedicated to addressing the complex needs of a varied patient population, including those with intellectual and developmental disabilities and individuals requiring rehabilitation. The company focuses on delivering personalized care solutions facilitated by a skilled workforce, which enhances patient outcomes and quality of life. With its strategic investments in innovative technology and a firm commitment to quality, BrightSpring is well-equipped to excel in the expanding value-based care market and to effectively navigate the evolving healthcare landscape.

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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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