WallStSmart

The Ensign Group Inc (ENSG)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 1685% more annual revenue ($97.93B vs $5.49B). JNJ leads profitability with a 21.5% profit margin vs 6.9%. ENSG appears more attractively valued with a PEG of 1.35. ENSG earns a higher WallStSmart Score of 61/100 (C+).

ENSG

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.0Value: 4.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.15

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ENSGSignificantly Overvalued (-39.8%)

Margin of Safety

-39.8%

Fair Value

$151.59

Current Price

$173.98

$22.39 premium

UndervaluedFair: $151.59Overvalued
JNJSignificantly Overvalued (-88.9%)

Margin of Safety

-88.9%

Fair Value

$140.57

Current Price

$265.58

$125.01 premium

UndervaluedFair: $140.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ENSG1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
17.3%8/10

17.3% revenue growth

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$640.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

ENSG2 concerns · Avg: 3.5/10
P/E RatioValuation
26.7x4/10

Moderate valuation

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.9%2/10

Earnings declined 0.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : ENSG

The strongest argument for ENSG centers on Revenue Growth. Revenue growth of 17.3% demonstrates continued momentum. PEG of 1.35 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 : ENSG

The primary concerns for ENSG are P/E Ratio, Profit Margin.

Bear Case : JNJ

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

Key Dynamics to Monitor

ENSG profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.

ENSG carries more volatility with a beta of 0.69 — expect wider price swings.

ENSG is growing revenue faster at 17.3% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

ENSG scores higher overall (61/100 vs 59/100) and 17.3% revenue growth. Both earn "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.

The Ensign Group Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

The Ensign Group, Inc. provides health care services in the post-acute care continuum and other ancillary businesses. The company is headquartered in San Juan Capistrano, California.

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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