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DHR vs JNJ

DHR
Danaher Corporation
NEUTRAL
Price
$195.50
Market Cap
$138.36B
Sector
Healthcare
AI Confidence
85%
JNJ
Johnson & Johnson
NEUTRAL
Price
$237.96
Market Cap
$573.46B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
DHR
38.94
JNJ
21.55
Forward P/E
DHR
21.49
JNJ
18.9
P/B Ratio
DHR
2.63
JNJ
7.03
P/S Ratio
DHR
5.63
JNJ
6.09
EV/EBITDA
DHR
19.57
JNJ
17.81

Profitability

Gross Margin
DHR
59.23%
JNJ
68.08%
Operating Margin
DHR
22.17%
JNJ
23.97%
Profit Margin
DHR
14.71%
JNJ
28.46%
ROE
DHR
7.05%
JNJ
35.03%
ROA
DHR
4.18%
JNJ
8.68%

Growth

Revenue Growth
DHR
4.6%
JNJ
9.1%
Earnings Growth
DHR
12.5%
JNJ
48.6%

Financial Health

Debt/Equity
DHR
0.37
JNJ
0.6
Current Ratio
DHR
1.87
JNJ
1.03
Quick Ratio
DHR
1.4
JNJ
0.69

Dividends

Dividend Yield
DHR
0.82%
JNJ
2.19%
Payout Ratio
DHR
25.45%
JNJ
46.6%

AI Verdict

DHR NEUTRAL

Danaher Corporation presents a dichotomy between strong operational quality and poor valuation metrics. The deterministic baseline is weak, with a Piotroski F-Score of 4/9 (Stable) and a current price of $195.50 that significantly exceeds both the Graham Number ($91.62) and the Intrinsic Value ($129.26). While the balance sheet is exceptionally healthy with low debt/equity (0.37), the stock is trading at a steep premium. Despite a 'Strong Buy' analyst consensus and a high target price of $256.05, the bearish technical trend and insider selling suggest caution.

Strengths
Very low Debt/Equity ratio (0.37) indicating high financial solvency
Strong Gross Margins (59.23%) reflecting significant pricing power
Consistent long-term track record of earnings beats over 25 quarters
Risks
Significant overvaluation relative to Graham and Intrinsic value models
Bearish technical trend (0/100) and negative 6-month price performance
Slow organic revenue growth (4.60% YoY)
JNJ NEUTRAL

JNJ presents a dichotomy between strong profitability and deteriorating fundamental health, evidenced by a weak Piotroski F-Score of 3/9. While the company maintains an impressive ROE of 35.03% and a consistent history of earnings beats, the current price of $237.96 trades at a significant premium to its Graham Number of $91.72. Growth remains robust on a YoY basis, but bearish insider sentiment and a very weak technical trend (10/100) suggest immediate headwinds. The stock is fundamentally sound in terms of earnings power but shows signs of operational inefficiency or declining quality in its deterministic health metrics.

Strengths
Exceptional Return on Equity (ROE) of 35.03%
Strong profit margins (28.46%) and gross margins (68.08%)
Consistent earnings beat track record over 25 quarters
Risks
Weak Piotroski F-Score (3/9) indicating declining fundamental health
Bearish insider activity with $58.35M in net sales and zero buys
Low liquidity indicated by a Quick Ratio of 0.69

Compare Another Pair

DHR vs JNJ: Head-to-Head Comparison

This page compares Danaher Corporation (DHR) and Johnson & Johnson (JNJ) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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