BAC vs JNJ: Which Is the Better Buy?
Side-by-side comparison of Bank of America Corporation and Johnson & Johnson — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Bank of America Corporation · Financial Services
$52.54
+7.3% upside to fair value
Grade B+
VS
Johnson & Johnson · Healthcare
$238.46
-11.8% upside to fair value
Med Conviction
Grade C+
QuantHub Verdict
BAC has more upside to fair value
(+7.3%).
BAC trades at a lower forward P/E
(12.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
BAC |
JNJ |
| Current Price |
$52.54 |
$238.46 |
| Fair Value Estimate |
$56.39 |
$210.28 |
| Upside to Fair Value |
+7.3%
|
-11.8%
|
| Market Cap |
$377.1B |
$574.7B |
| Forward P/E |
12.1x
|
20.2x
|
| EV / EBITDA |
12.8x
|
13.3x
|
| Price / Sales |
2.0x
|
6.2x
|
| Price / FCF |
29.9x
|
29.4x
|
| Revenue Growth YoY |
-0.5%
|
+6.1%
|
| Gross Margin |
56.1%
|
72.8%
|
| Operating Margin |
19.7%
|
27.2%
|
| Return on Equity |
10.1%
|
32.87%
|
| Dividend Yield |
2.09% |
2.18% |
| FCF Yield |
3.35%
|
3.4%
|
| Analyst Consensus |
Buy
|
Moderate Buy
|
Investment Thesis
Bank of America is a top-two U.S. bank by assets with $3.4 trillion on its balance sheet, generating $30.5 billion in net income in 2025 on the back of 12.5% earnings growth. The bank benefits from scale in consumer deposits, a recovering investment banking franchise, and an expanding digital platform serving 47 million active users. At 12.7x trailing earnings and 1.97x sales, BAC trades at a fai…
Johnson & Johnson is a high-quality healthcare conglomerate focused exclusively on Innovative Medicine and MedTech following the Kenvue spin-off. The company delivered $94.2B in FY2025 revenue with 6% operational growth, generated $19.7B in free cash flow, and guided for $99.5-100.5B in 2026 operational sales (above consensus). However, at $238 the stock trades at a P/S of 6.15x, well above the 5…
Accumulation Zones
| Metric |
BAC |
JNJ |
| Zone Low |
$42.29 |
$157.71 |
| Zone High |
$47.93 |
$178.74 |
| In Buy Zone? |
No
|
No
|