WallStSmart

HealthStream Inc (HSTM)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 30807% more annual revenue ($96.36B vs $311.78M). JNJ leads profitability with a 21.8% profit margin vs 6.4%. HSTM appears more attractively valued with a PEG of 2.99. JNJ earns a higher WallStSmart Score of 57/100 (C).

HSTM

Buy

55

out of 100

Grade: C

Growth: 6.7Profit: 4.5Value: 3.7Quality: 6.0
Piotroski: 3/9Altman Z: 2.33

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HSTM.

JNJSignificantly Overvalued (-87.1%)

Margin of Safety

-87.1%

Fair Value

$136.12

Current Price

$254.66

$118.54 premium

UndervaluedFair: $136.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSTM3 strengths · Avg: 8.7/10
Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

EPS GrowthGrowth
42.9%8/10

Earnings expanding 42.9% YoY

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$613.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
25.9%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

Areas to Watch

HSTM4 concerns · Avg: 3.3/10
P/E RatioValuation
38.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$749.08M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
29.5x4/10

Moderate valuation

PEG RatioValuation
4.892/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : HSTM

The strongest argument for HSTM centers on Debt/Equity, Price/Book, EPS Growth. Revenue growth of 10.5% demonstrates continued momentum.

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 P/E Ratio, Market Cap, Return on Equity.

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 0.47 — expect wider price swings.

HSTM is growing revenue faster at 10.5% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (57/100 vs 55/100), backed by strong 21.8% margins. 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.

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.

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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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