Elevance Health Inc (ELV)vsJohnson & Johnson (JNJ)
ELV
Elevance Health Inc
$286.39
-0.56%
HEALTHCARE · Cap: $63.21B
JNJ
Johnson & Johnson
$240.45
+0.85%
HEALTHCARE · Cap: $579.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Elevance Health Inc generates 111% more annual revenue ($199.13B vs $94.19B). JNJ leads profitability with a 28.5% profit margin vs 2.8%. ELV appears more attractively valued with a PEG of 1.10. JNJ earns a higher WallStSmart Score of 71/100 (B).
ELV
Strong Buy67
out of 100
Grade: B-
JNJ
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+75.7%
Fair Value
$1179.36
Current Price
$286.39
$892.97 discount
Margin of Safety
+53.5%
Fair Value
$516.67
Current Price
$240.45
$276.22 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Large-cap with strong market position
Earnings expanding 36.3% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Areas to Watch
2.8% margin — thin
Operating margin of 1.5%
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ELV
The strongest argument for ELV centers on P/E Ratio, Price/Book, Market Cap. PEG of 1.10 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 28.5% and operating margin at 24.0%.
Bear Case : ELV
The primary concerns for ELV are Profit Margin, Operating Margin, Piotroski F-Score. Thin 2.8% margins leave little buffer for downturns.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Key Dynamics to Monitor
ELV profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
ELV carries more volatility with a beta of 0.47 — expect wider price swings.
ELV is growing revenue faster at 9.5% — sustainability is the question.
JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (71/100 vs 67/100), backed by strong 28.5% margins. ELV offers better value entry with a 75.7% margin of safety. Both earn "Strong Buy" and "Strong 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.
Elevance Health Inc
HEALTHCARE · HEALTHCARE PLANS · USA
Elevance Health Inc. is a health benefits company. The company is headquartered in Indianapolis, Indiana.
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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