WallStSmart

Johnson & Johnson (JNJ)vsNational HealthCare Corporation (NHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 6249% more annual revenue ($96.36B vs $1.52B). JNJ leads profitability with a 21.8% profit margin vs 7.9%. NHC appears more attractively valued with a PEG of 0.82. NHC earns a higher WallStSmart Score of 62/100 (C+).

JNJ

Buy

59

out of 100

Grade: C

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

NHC

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 5.5Value: 6.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$229.85

$69.72 premium

UndervaluedFair: $160.13Overvalued
NHCOvervalued (-6.8%)

Margin of Safety

-6.8%

Fair Value

$157.58

Current Price

$175.07

$17.49 premium

UndervaluedFair: $157.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

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

NHC3 strengths · Avg: 8.7/10
EPS GrowthGrowth
306.3%10/10

Earnings expanding 306.3% YoY

PEG RatioValuation
0.828/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

NHC2 concerns · Avg: 3.5/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

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 : NHC

The strongest argument for NHC centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.82 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 : NHC

The primary concerns for NHC are Revenue Growth, Profit Margin.

Key Dynamics to Monitor

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

NHC carries more volatility with a beta of 0.59 — 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

NHC scores higher overall (62/100 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.

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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National HealthCare Corporation

HEALTHCARE · MEDICAL CARE FACILITIES · USA

National HealthCare Corporation operates, manages, and provides services to skilled nursing facilities, assisted living facilities, independent living facilities, home health programs, and a behavioral health hospital. The company is headquartered in Murfreesboro, Tennessee.

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