Johnson & Johnson (JNJ)vsSurgery Partners Inc (SGRY)
JNJ
Johnson & Johnson
$266.38
+0.30%
HEALTHCARE · Cap: $640.02B
SGRY
Surgery Partners Inc
$14.38
+1.84%
HEALTHCARE · Cap: $1.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 2809% more annual revenue ($97.93B vs $3.37B). JNJ leads profitability with a 21.5% profit margin vs -2.6%. SGRY appears more attractively valued with a PEG of 1.66. JNJ earns a higher WallStSmart Score of 59/100 (C).
JNJ
Buy59
out of 100
Grade: C
SGRY
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-88.9%
Fair Value
$140.57
Current Price
$266.38
$125.81 premium
Margin of Safety
+44.7%
Fair Value
$27.13
Current Price
$14.38
$12.75 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 0.9%
Expensive relative to growth rate
2.7% revenue growth
0.0% earnings growth
Smaller company, higher risk/reward
Comparative Analysis Report
WallStSmart ResearchBull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.5% and operating margin at 29.2%.
Bull Case : SGRY
The strongest argument for SGRY centers on Price/Book.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : SGRY
The primary concerns for SGRY are PEG Ratio, Revenue Growth, EPS Growth. Debt-to-equity of 2.40 is elevated, increasing financial risk.
Key Dynamics to Monitor
JNJ profiles as a mature stock while SGRY is a turnaround play — different risk/reward profiles.
SGRY carries more volatility with a beta of 1.92 — expect wider price swings.
JNJ is growing revenue faster at 6.6% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 49/100), backed by strong 21.5% margins. SGRY offers better value entry with a 44.7% 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.
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 →Surgery Partners Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Surgery Partners, Inc. owns and operates a network of surgical facilities and ancillary services in the United States. The company is headquartered in Brentwood, Tennessee.
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