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EHAB vs JNJ

EHAB
Enhabit, Inc.
BEARISH
Price
$13.74
Market Cap
$703.8M
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
EHAB
--
JNJ
21.55
Forward P/E
EHAB
22.12
JNJ
18.9
P/B Ratio
EHAB
1.31
JNJ
7.03
P/S Ratio
EHAB
0.66
JNJ
6.09
EV/EBITDA
EHAB
13.71
JNJ
17.81

Profitability

Gross Margin
EHAB
49.04%
JNJ
68.08%
Operating Margin
EHAB
5.33%
JNJ
23.97%
Profit Margin
EHAB
-0.43%
JNJ
28.46%
ROE
EHAB
-0.46%
JNJ
35.03%
ROA
EHAB
3.33%
JNJ
8.68%

Growth

Revenue Growth
EHAB
4.7%
JNJ
9.1%
Earnings Growth
EHAB
--
JNJ
48.6%

Financial Health

Debt/Equity
EHAB
0.89
JNJ
0.6
Current Ratio
EHAB
1.63
JNJ
1.03
Quick Ratio
EHAB
1.49
JNJ
0.69

Dividends

Dividend Yield
EHAB
--
JNJ
2.19%
Payout Ratio
EHAB
0.0%
JNJ
46.6%

AI Verdict

EHAB BEARISH

EHAB exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health and operational deterioration. While the stock has seen a significant 1-year price surge (+78.4%), this momentum is disconnected from core profitability, as evidenced by a negative profit margin (-0.43%) and negative ROE (-0.46%). The lack of a Graham Number and the absence of an Altman Z-Score, combined with bearish insider selling, suggest a speculative valuation. The recent price action likely reflects merger speculation mentioned in SEC filings rather than organic growth.

Strengths
Strong 1-year price momentum (+78.4%)
Low Price-to-Sales ratio (0.66)
Healthy liquidity ratios (Current Ratio 1.63, Quick Ratio 1.49)
Risks
Critical financial health failure (Piotroski F-Score 2/9)
Negative net profit margins and negative Return on Equity
Stagnant revenue growth (4.70% 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

EHAB vs JNJ: Head-to-Head Comparison

This page compares Enhabit, Inc. (EHAB) 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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