WallStSmart

Johnson & Johnson (JNJ)vsMednax Inc (MD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 4888% more annual revenue ($96.36B vs $1.93B). JNJ leads profitability with a 21.8% profit margin vs 9.0%. MD appears more attractively valued with a PEG of 0.24. MD earns a higher WallStSmart Score of 68/100 (B-).

JNJ

Buy

59

out of 100

Grade: C

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

MD

Strong Buy

68

out of 100

Grade: B-

Growth: 5.3Profit: 6.5Value: 10.0Quality: 6.0
Piotroski: 5/9Altman Z: 1.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-38.5%)

Margin of Safety

-38.5%

Fair Value

$160.72

Current Price

$221.32

$60.60 premium

UndervaluedFair: $160.72Overvalued
MDUndervalued (+72.2%)

Margin of Safety

+72.2%

Fair Value

$77.27

Current Price

$23.51

$53.76 discount

UndervaluedFair: $77.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$535.63B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%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

MD5 strengths · Avg: 9.0/10
PEG RatioValuation
0.2410/10

Growing faster than its price suggests

P/E RatioValuation
11.1x10/10

Attractively priced relative to earnings

Return on EquityProfitability
20.9%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

EPS GrowthGrowth
48.3%8/10

Earnings expanding 48.3% YoY

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.922/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

MD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.9%4/10

3.9% revenue growth

Altman Z-ScoreHealth
1.564/10

Distress zone — elevated risk

Market CapQuality
$1.88B3/10

Smaller company, higher risk/reward

Free Cash FlowQuality
$-135.75M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : MD

The strongest argument for MD centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.24 suggests the stock is reasonably priced for its growth.

Bear Case : JNJ

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

Bear Case : MD

The primary concerns for MD are Revenue Growth, Altman Z-Score, Market Cap.

Key Dynamics to Monitor

JNJ profiles as a mature stock while MD is a value play — different risk/reward profiles.

MD carries more volatility with a beta of 0.71 — 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

MD scores higher overall (68/100 vs 59/100). Both earn "Strong 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.

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 →

Mednax Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

MEDNAX, Inc., provides neonatal, maternal-fetal, pediatric cardiology, and other pediatric subspecialties in the United States and Puerto Rico. The company is headquartered in Sunrise, Florida.

Visit Website →

Want to dig deeper into these stocks?