Healthcare Services Group Inc (HCSG)vsJohnson & Johnson (JNJ)
HCSG
Healthcare Services Group Inc
$22.07
+1.56%
HEALTHCARE · Cap: $1.46B
JNJ
Johnson & Johnson
$224.62
-0.41%
HEALTHCARE · Cap: $546.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 5102% more annual revenue ($96.36B vs $1.85B). JNJ leads profitability with a 21.8% profit margin vs 3.7%. HCSG appears more attractively valued with a PEG of 1.36. HCSG earns a higher WallStSmart Score of 60/100 (C+).
HCSG
Buy60
out of 100
Grade: C+
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+80.8%
Fair Value
$115.76
Current Price
$22.07
$93.69 discount
Margin of Safety
-40.3%
Fair Value
$160.72
Current Price
$224.62
$63.90 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 60.9% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Areas to Watch
3.4% revenue growth
Smaller company, higher risk/reward
3.7% margin — thin
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : HCSG
The strongest argument for HCSG centers on EPS Growth, Debt/Equity, Altman Z-Score. PEG of 1.36 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 : HCSG
The primary concerns for HCSG are Revenue Growth, Market Cap, Profit Margin. Thin 3.7% 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
HCSG profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
HCSG carries more volatility with a beta of 0.81 — 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
HCSG scores higher overall (60/100 vs 59/100). 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.
Healthcare Services Group Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Healthcare Services Group, Inc. provides management, administrative, and operational services to the cleaning, laundry, bedding, facility maintenance, and dietary services departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. . The company is headquartered in Bensalem, Pennsylvania.
Visit Website →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.
Visit Website →Compare with Other MEDICAL CARE FACILITIES Stocks
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