BAC vs JNJ: Which Is the Better Buy?
Side-by-side comparison of Bank of America Corporation and Johnson & Johnson โ fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-15.
Bank of America Corporation ยท Financial Services
$59.50
-45.0% upside to fair value
Grade C
VS
Johnson & Johnson ยท Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
JNJ has more upside to fair value
(-21.7%).
BAC trades at a lower forward P/E
(14.6x).
These are model outputs โ not personalized investment advice.
See all research โ
Valuation & Fundamentals
| Metric |
BAC |
JNJ |
| Current Price |
$59.50 |
$253.85 |
| Fair Value Estimate |
$32.73 |
$198.76 |
| Upside to Fair Value |
-45.0%
|
-21.7%
|
| Market Cap |
$422.2B |
$611.1B |
| Forward P/E |
14.6x
|
29.3x
|
| EV / EBITDA |
13.3x
|
19.2x
|
| Price / Sales |
2.4x
|
6.3x
|
| Price / FCF |
7.5x
|
34.3x
|
| Revenue Growth YoY |
-35.6%
|
+9.9%
|
| Gross Margin |
63.2%
|
69.1%
|
| Operating Margin |
22.9%
|
26.9%
|
| Return on Equity |
10.5%
|
26.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
13.4%
|
2.91%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Bank of America Corporation operates as a diversified bank within the financial services sector, offering a broad range of banking and financial products. The business quality is medium, supported by a 10.5% return on equity and solid margins, but recent revenue declined sharply by 35.6% in the most recent quarter, indicating top-line pressure. Despite earnings growth of 16.1% in the same period,โฆ
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,โฆ
Accumulation Zones
| Metric |
BAC |
JNJ |
| Zone Low |
$24.55 |
$149.07 |
| Zone High |
$27.82 |
$168.95 |
| In Buy Zone? |
No
|
No
|