Johnson & Johnson (JNJ)vsTenet Healthcare Corporation (THC)
JNJ
Johnson & Johnson
$239.93
-0.25%
HEALTHCARE · Cap: $578.21B
THC
Tenet Healthcare Corporation
$200.04
+0.21%
HEALTHCARE · Cap: $17.58B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 342% more annual revenue ($94.19B vs $21.31B). JNJ leads profitability with a 28.5% profit margin vs 6.6%. JNJ appears more attractively valued with a PEG of 1.65. JNJ earns a higher WallStSmart Score of 71/100 (B).
JNJ
Strong Buy71
out of 100
Grade: B
THC
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.7%
Fair Value
$516.67
Current Price
$239.93
$276.74 discount
Margin of Safety
+68.8%
Fair Value
$724.93
Current Price
$200.04
$524.89 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Every $100 of equity generates 27 in profit
Attractively priced relative to earnings
Earnings expanding 27.6% YoY
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
6.6% margin — thin
Expensive relative to growth rate
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 28.5% and operating margin at 24.0%.
Bull Case : THC
The strongest argument for THC centers on Return on Equity, P/E Ratio, EPS Growth.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Bear Case : THC
The primary concerns for THC are Altman Z-Score, Profit Margin, PEG Ratio.
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 1.41 — expect wider price swings.
JNJ is growing revenue faster at 9.1% — sustainability is the question.
JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (71/100 vs 66/100), backed by strong 28.5% margins. THC offers better value entry with a 68.8% margin of safety. Both earn "Strong Buy" and "Strong 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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