HealthStream Inc (HSTM)vsJohnson & Johnson (JNJ)
HSTM
HealthStream Inc
$21.22
-1.94%
HEALTHCARE · Cap: $628.01M
JNJ
Johnson & Johnson
$229.85
+1.10%
HEALTHCARE · Cap: $547.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 31591% more annual revenue ($96.36B vs $304.06M). JNJ leads profitability with a 21.8% profit margin vs 6.0%. HSTM appears more attractively valued with a PEG of 2.45. JNJ earns a higher WallStSmart Score of 59/100 (C).
HSTM
Hold45
out of 100
Grade: D
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.7%
Fair Value
$44.51
Current Price
$21.22
$23.29 discount
Margin of Safety
-43.5%
Fair Value
$160.13
Current Price
$229.85
$69.72 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
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
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 5.1% — below average capital efficiency
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : HSTM
The strongest argument for HSTM centers on Debt/Equity, Price/Book.
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 : HSTM
The primary concerns for HSTM are PEG Ratio, P/E Ratio, Market Cap.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
HSTM profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
HSTM carries more volatility with a beta of 0.46 — 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
JNJ scores higher overall (59/100 vs 45/100), backed by strong 21.8% margins. HSTM offers better value entry with a 54.7% 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.
HealthStream Inc
HEALTHCARE · HEALTH INFORMATION SERVICES · USA
HealthStream, Inc. provides provider and staff solutions for healthcare organizations in the United States. The company is headquartered in Nashville, Tennessee.
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 HEALTH INFORMATION SERVICES Stocks
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