WallStSmart

Johnson & Johnson (JNJ)vsUniversal Health Services Inc (UHS)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 448% more annual revenue ($99.33B vs $18.11B). JNJ leads profitability with a 16.2% profit margin vs 8.4%. UHS appears more attractively valued with a PEG of 1.21. UHS earns a higher WallStSmart Score of 72/100 (B).

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 2.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.64

UHS

Strong Buy

72

out of 100

Grade: B

Growth: 6.0Profit: 7.0Value: 6.0Quality: 6.0
Piotroski: 5/9Altman Z: 2.76
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-83.0%)

Margin of Safety

-83.0%

Fair Value

$144.12

Current Price

$271.17

$127.05 premium

UndervaluedFair: $144.12Overvalued
UHSSignificantly Overvalued (-24.2%)

Margin of Safety

-24.2%

Fair Value

$186.20

Current Price

$172.18

$14.02 premium

UndervaluedFair: $186.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ3 strengths · Avg: 8.7/10
Market CapQuality
$615.87B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
25.1%8/10

Strong operational efficiency at 25.1%

Free Cash FlowQuality
$6.36B8/10

Generating 6.4B in free cash flow

UHS3 strengths · Avg: 9.7/10
P/E RatioValuation
7.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
20.3%9/10

Every $100 of equity generates 20 in profit

Areas to Watch

JNJ4 concerns · Avg: 2.8/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-96.0%2/10

Earnings declined 96.0%

UHS0 concerns · Avg: 0/10

No major concerns identified

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 25.1%.

Bull Case : UHS

The strongest argument for UHS centers on P/E Ratio, Price/Book, Return on Equity. PEG of 1.21 suggests the stock is reasonably priced for its growth.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : UHS

No major red flags identified for UHS, but monitor valuation.

Key Dynamics to Monitor

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

UHS carries more volatility with a beta of 1.03 — expect wider price swings.

UHS is growing revenue faster at 8.3% — sustainability is the question.

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

Bottom Line

UHS scores higher overall (72/100 vs 57/100). 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.

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Universal Health Services Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services.

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