Cardinal Health Inc (CAH)vsJohnson & Johnson (JNJ)
CAH
Cardinal Health Inc
$201.77
+1.22%
HEALTHCARE · Cap: $52.43B
JNJ
Johnson & Johnson
$232.77
+1.07%
HEALTHCARE · Cap: $536.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Cardinal Health Inc generates 160% more annual revenue ($250.74B vs $96.36B). JNJ leads profitability with a 21.8% profit margin vs 0.6%. CAH appears more attractively valued with a PEG of 1.39. JNJ earns a higher WallStSmart Score of 59/100 (C).
CAH
Hold47
out of 100
Grade: D+
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.2%
Fair Value
$170.63
Current Price
$201.77
$31.14 premium
Margin of Safety
-71.4%
Fair Value
$135.80
Current Price
$232.77
$96.97 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Generating 1.7B in free cash flow
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
Areas to Watch
Premium valuation, high expectations priced in
ROE of 0.0% — below average capital efficiency
0.6% margin — thin
Operating margin of 1.4%
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : CAH
The strongest argument for CAH centers on Debt/Equity, Altman Z-Score, Market Cap. Revenue growth of 11.0% demonstrates continued momentum. PEG of 1.39 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 21.8% and operating margin at 27.4%.
Bear Case : CAH
The primary concerns for CAH are P/E Ratio, Return on Equity, Profit Margin. Thin 0.6% 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
CAH profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
CAH carries more volatility with a beta of 0.53 — expect wider price swings.
CAH is growing revenue faster at 11.0% — sustainability is the question.
CAH generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 47/100), backed by strong 21.8% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cardinal Health Inc
HEALTHCARE · MEDICAL DISTRIBUTION · USA
Cardinal Health, Inc. is an American multinational health care services company.
Visit Website →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 →Compare with Other MEDICAL DISTRIBUTION Stocks
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