Community Health Systems Inc (CYH)vsJohnson & Johnson (JNJ)
CYH
Community Health Systems Inc
$2.95
-0.34%
HEALTHCARE · Cap: $391.75M
JNJ
Johnson & Johnson
$257.58
+1.04%
HEALTHCARE · Cap: $614.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 717% more annual revenue ($97.93B vs $11.98B). JNJ leads profitability with a 21.5% profit margin vs 2.1%. CYH appears more attractively valued with a PEG of 2.38. JNJ earns a higher WallStSmart Score of 57/100 (C).
CYH
Hold45
out of 100
Grade: D+
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+86.7%
Fair Value
$25.26
Current Price
$2.95
$22.31 discount
Margin of Safety
-84.8%
Fair Value
$139.37
Current Price
$257.58
$118.21 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 0.0% — below average capital efficiency
2.1% margin — thin
Moderate valuation
Expensive relative to growth rate
Earnings declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : CYH
The strongest argument for CYH centers on P/E Ratio, Debt/Equity.
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 : CYH
The primary concerns for CYH are PEG Ratio, Market Cap, Return on Equity. Thin 2.1% 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
CYH profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
CYH carries more volatility with a beta of 1.81 — expect wider price swings.
JNJ is growing revenue faster at 6.6% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 45/100), backed by strong 21.5% margins. CYH offers better value entry with a 86.7% margin of safety. 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.
Community Health Systems Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Community Health Systems, Inc. owns, leases and operates general acute care hospitals in the United States. The company is headquartered in Franklin, Tennessee.
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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