CRM vs JNJ: Which Is the Better Buy?
Side-by-side comparison of Salesforce, Inc. and Johnson & Johnson — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-16.
Salesforce, Inc. · Technology
$181.22
+161.6% upside to fair value
High Conviction
Grade A-
VS
Johnson & Johnson · Healthcare
$238.46
-11.8% upside to fair value
Med Conviction
Grade C+
QuantHub Verdict
CRM has more upside to fair value
(+161.6%).
JNJ trades at a lower forward P/E
(20.2x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CRM |
JNJ |
| Current Price |
$181.22 |
$238.46 |
| Fair Value Estimate |
$474.00 |
$210.28 |
| Upside to Fair Value |
+161.6%
|
-11.8%
|
| Market Cap |
$169.8B |
$574.7B |
| Forward P/E |
22.7x
|
20.2x
|
| EV / EBITDA |
—
|
13.3x
|
| Price / Sales |
4.1x
|
6.2x
|
| Price / FCF |
11.8x
|
29.4x
|
| Revenue Growth YoY |
+9.2%
|
+6.1%
|
| Gross Margin |
77.7%
|
72.8%
|
| Operating Margin |
21.5%
|
27.2%
|
| Return on Equity |
12.4%
|
32.87%
|
| Dividend Yield |
— |
2.18% |
| FCF Yield |
8.5%
|
3.4%
|
| Analyst Consensus |
Strong Buy
|
Moderate Buy
|
Investment Thesis
Salesforce is the leading global provider of CRM software, offering a strong competitive moat through market dominance and high switching costs, complemented by acquisitions like Slack and Tableau, with excellent margins above 77% gross and robust free cash flow of $15.16 per share. Despite decelerating revenue growth at 9.2% YoY and negative earnings growth of -6.9%, the business remains high-qu…
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 |
CRM |
JNJ |
| Zone Low |
$356.00 |
$157.71 |
| Zone High |
$403.00 |
$178.74 |
| In Buy Zone? |
Yes
|
No
|