WallStSmart

Carnival Corporation (CCL)vsJohnson & Johnson (JNJ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 257% more annual revenue ($96.36B vs $26.98B). JNJ leads profitability with a 21.8% profit margin vs 11.5%. CCL appears more attractively valued with a PEG of 1.09. CCL earns a higher WallStSmart Score of 70/100 (B).

CCL

Strong Buy

70

out of 100

Grade: B

Growth: 8.7Profit: 7.0Value: 8.7Quality: 3.0
Piotroski: 5/9Altman Z: 0.89

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

CCLUndervalued (+30.7%)

Margin of Safety

+30.7%

Fair Value

$47.73

Current Price

$26.38

$21.35 discount

UndervaluedFair: $47.73Overvalued
JNJSignificantly Overvalued (-38.5%)

Margin of Safety

-38.5%

Fair Value

$160.72

Current Price

$221.32

$60.60 premium

UndervaluedFair: $160.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CCL4 strengths · Avg: 8.8/10
P/E RatioValuation
11.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
27.9%9/10

Every $100 of equity generates 28 in profit

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

EPS GrowthGrowth
35.8%8/10

Earnings expanding 35.8% YoY

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$535.63B10/10

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

CCL2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.892/10

Distress zone — elevated risk

Debt/EquityHealth
2.281/10

Elevated debt levels

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.922/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : CCL

The strongest argument for CCL centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.09 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 : CCL

The primary concerns for CCL are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.28 is elevated, increasing financial risk.

Bear Case : JNJ

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

Key Dynamics to Monitor

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

CCL carries more volatility with a beta of 2.33 — 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

CCL scores higher overall (70/100 vs 59/100). 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.

Carnival Corporation

CONSUMER CYCLICAL · TRAVEL SERVICES · USA

Carnival Corporation & plc is a British-American cruise operator, currently the world's largest travel leisure company, with a combined fleet of over 100 vessels across 10 cruise line brands.

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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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