WallStSmart

HealthStream Inc (HSTM)vsJohnson & Johnson (JNJ)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 30189% more annual revenue ($99.33B vs $327.95M). JNJ leads profitability with a 16.2% profit margin vs 6.3%. JNJ appears more attractively valued with a PEG of 3.07. JNJ earns a higher WallStSmart Score of 54/100 (C-).

HSTM

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 4.5Value: 3.7Quality: 6.5
Piotroski: 3/9Altman Z: 2.33

JNJ

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSTM2 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$657.68B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

Areas to Watch

HSTM4 concerns · Avg: 3.0/10
Market CapQuality
$993.75M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.1%3/10

ROE of 5.1% — below average capital efficiency

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

JNJ4 concerns · Avg: 2.8/10
Price/BookValuation
8.4x4/10

Trading at 8.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.072/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull 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, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.7%.

Bear Case : HSTM

The primary concerns for HSTM are Market Cap, Return on Equity, Profit Margin. A P/E of 46.4x leaves little room for execution misses.

Bear Case : JNJ

The primary concerns for JNJ are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.

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 0.43 — expect wider price swings.

HSTM is growing revenue faster at 8.9% — sustainability is the question.

JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (54/100 vs 41/100), backed by strong 16.2% margins. 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 →

Want to dig deeper into these stocks?