Johnson & Johnson (JNJ)vsUnitedHealth Group Incorporated (UNH)
JNJ
Johnson & Johnson
$239.93
+1.98%
HEALTHCARE · Cap: $567.22B
UNH
UnitedHealth Group Incorporated
$270.55
-0.64%
HEALTHCARE · Cap: $250.15B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 375% more annual revenue ($447.57B vs $94.19B). JNJ leads profitability with a 28.5% profit margin vs 2.7%. UNH appears more attractively valued with a PEG of 0.98. JNJ earns a higher WallStSmart Score of 71/100 (B).
JNJ
Strong Buy71
out of 100
Grade: B
UNH
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.5%
Fair Value
$516.67
Current Price
$239.93
$276.74 discount
Margin of Safety
-202.7%
Fair Value
$89.96
Current Price
$270.55
$180.59 premium
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 28 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
Mega-cap, among the largest globally
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
2.7% margin — thin
Operating margin of 0.3%
Earnings declined 99.9%
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 : UNH
The strongest argument for UNH centers on Market Cap, PEG Ratio, Price/Book. Revenue growth of 12.3% demonstrates continued momentum. PEG of 0.98 suggests the stock is reasonably priced for its growth.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Bear Case : UNH
The primary concerns for UNH are Profit Margin, Operating Margin, EPS Growth. Thin 2.7% 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 0.38 — expect wider price swings.
UNH is growing revenue faster at 12.3% — 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 59/100), backed by strong 28.5% margins. 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 →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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