Johnson & Johnson (JNJ)vsUnitedHealth Group Incorporated (UNH)
JNJ
Johnson & Johnson
$275.19
+1.53%
HEALTHCARE · Cap: $615.87B
UNH
UnitedHealth Group Incorporated
$407.10
+0.90%
HEALTHCARE · Cap: $360.32B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 353% more annual revenue ($450.06B vs $99.33B). JNJ leads profitability with a 16.2% profit margin vs 3.5%. UNH appears more attractively valued with a PEG of 1.01. UNH earns a higher WallStSmart Score of 62/100 (C+).
JNJ
Buy57
out of 100
Grade: C
UNH
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$275.19
$131.07 premium
Margin of Safety
-25.9%
Fair Value
$326.16
Current Price
$407.10
$80.94 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Mega-cap, among the largest globally
Earnings expanding 75.9% YoY
Generating 4.3B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
Moderate valuation
3.5% margin — thin
Revenue declined 0.4%
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 25.1%.
Bull Case : UNH
The strongest argument for UNH centers on Market Cap, EPS Growth, Free Cash Flow. PEG of 1.01 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 : UNH
The primary concerns for UNH are P/E Ratio, Profit Margin, Revenue Growth. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
JNJ profiles as a mature stock while UNH is a value play — different risk/reward profiles.
UNH carries more volatility with a beta of 0.61 — expect wider price swings.
JNJ is growing revenue faster at 5.9% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
UNH scores higher overall (62/100 vs 57/100). Both earn "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 →UnitedHealth Group Incorporated
HEALTHCARE · HEALTHCARE PLANS · 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. In 2020, it was the second-largest healthcare company (behind CVS Health) by revenue with $257.1 billion, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group's overall revenue.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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