Danaher Corporation (DHR)vsJohnson & Johnson (JNJ)
DHR
Danaher Corporation
$204.76
+2.39%
HEALTHCARE · Cap: $125.93B
JNJ
Johnson & Johnson
$259.24
+0.88%
HEALTHCARE · Cap: $614.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 290% more annual revenue ($97.93B vs $25.11B). JNJ leads profitability with a 21.5% profit margin vs 16.0%. DHR appears more attractively valued with a PEG of 1.15. DHR earns a higher WallStSmart Score of 66/100 (B-).
DHR
Strong Buy66
out of 100
Grade: B-
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-66.7%
Fair Value
$117.88
Current Price
$204.76
$86.88 premium
Margin of Safety
-84.8%
Fair Value
$139.37
Current Price
$259.24
$119.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 59.7% YoY
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.3B in free cash flow
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
Premium valuation, high expectations priced in
ROE of 7.6% — below average capital efficiency
Moderate valuation
Expensive relative to growth rate
Earnings declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : DHR
The strongest argument for DHR centers on EPS Growth, Market Cap, Price/Book. Profitability is solid with margins at 16.0% and operating margin at 18.0%. PEG of 1.15 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 : DHR
The primary concerns for DHR are P/E Ratio, Return on Equity.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
DHR carries more volatility with a beta of 0.82 — 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.
Monitor DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DHR scores higher overall (66/100 vs 57/100), backed by strong 16.0% margins. 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.
Danaher Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Danaher Corporation is an American globally diversified conglomerate with its headquarters in Washington, D.C.. The company designs, manufactures, and markets professional, medical, industrial, and commercial products and services. The company's 3 platforms are Life Sciences, Diagnostics, and Environmental & Applied Solutions.
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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