AMZN vs JNJ: Which Is the Better Buy?
Side-by-side comparison of Amazon.com, Inc. and Johnson & Johnson — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-15.
Amazon.com, Inc. · Consumer Cyclical
$242.67
+22.0% upside to fair value
Grade B
High Quality
VS
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
AMZN has more upside to fair value
(+22.0%).
AMZN trades at a lower forward P/E
(28.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMZN |
JNJ |
| Current Price |
$242.67 |
$253.85 |
| Fair Value Estimate |
$295.95 |
$198.76 |
| Upside to Fair Value |
+22.0%
|
-21.7%
|
| Market Cap |
$2,610.4B |
$611.1B |
| Forward P/E |
28.7x
|
29.3x
|
| EV / EBITDA |
14.4x
|
19.2x
|
| Price / Sales |
3.5x
|
6.3x
|
| Price / FCF |
-1056.0x
|
34.3x
|
| Revenue Growth YoY |
+16.6%
|
+9.9%
|
| Gross Margin |
50.6%
|
69.1%
|
| Operating Margin |
11.5%
|
26.9%
|
| Return on Equity |
23.3%
|
26.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
—
|
2.91%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Amazon.com, Inc. operates a diversified platform with core engines in retail, AWS cloud services, and advertising, leveraging a strong competitive moat driven by scale, logistics, and technology leadership. The company exhibits high business quality with 23.3% ROE, 16.6% revenue growth, and 76.7% earnings growth in the most recent quarter, supported by a widening moat in e-commerce and cloud. Des…
Johnson & Johnson is a leading healthcare conglomerate operating primarily in the drug manufacturing sector, known for its durable competitive moat supported by strong brand recognition and intangible assets. The company exhibits high business quality with a 26.3% return on equity and robust gross and net margins of 69.1% and 21.8%, respectively. However, earnings have faced significant pressure,…
Accumulation Zones
| Metric |
AMZN |
JNJ |
| Zone Low |
$221.96 |
$149.07 |
| Zone High |
$251.56 |
$168.95 |
| In Buy Zone? |
Yes
|
No
|