Johnson & Johnson (JNJ)vsTenet Healthcare Corporation (THC)
JNJ
Johnson & Johnson
$283.62
+1.11%
HEALTHCARE · Cap: $657.68B
THC
Tenet Healthcare Corporation
$286.86
-2.09%
HEALTHCARE · Cap: $23.10B
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
Buy54
out of 100
Grade: C-
THC
Strong Buy71
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.7%
Generating 6.4B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 53 in profit
Earnings expanding 221.5% YoY
Generating 1.1B in free cash flow
Areas to Watch
Trading at 8.4x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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.
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