WallStSmart

Johnson & Johnson (JNJ)vsTenet Healthcare Corporation (THC)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 348% more annual revenue ($99.33B vs $22.15B). JNJ leads profitability with a 16.2% profit margin vs 13.1%. THC appears more attractively valued with a PEG of 1.91. THC earns a higher WallStSmart Score of 71/100 (B).

JNJ

Buy

54

out of 100

Grade: C-

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

THC

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 8.0Value: 6.3Quality: 5.0
Piotroski: 4/9Altman Z: 1.73

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

THC4 strengths · Avg: 9.5/10
P/E RatioValuation
8.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
53.3%10/10

Every $100 of equity generates 53 in profit

EPS GrowthGrowth
221.5%10/10

Earnings expanding 221.5% YoY

Free Cash FlowQuality
$1.08B8/10

Generating 1.1B in free cash flow

Areas to Watch

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

THC3 concerns · Avg: 3.0/10
PEG RatioValuation
1.914/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.734/10

Distress zone — elevated risk

Debt/EquityHealth
2.431/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : THC

The strongest argument for THC centers on P/E Ratio, Return on Equity, EPS Growth.

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.

Bear Case : THC

The primary concerns for THC are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.43 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

THC carries more volatility with a beta of 1.20 — expect wider price swings.

THC is growing revenue faster at 6.5% — sustainability is the question.

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

Bottom Line

THC scores higher overall (71/100 vs 54/100). 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 →

Tenet Healthcare Corporation

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.

Want to dig deeper into these stocks?