CVX vs JNJ: Which Is the Better Buy?

Side-by-side comparison of Chevron Corporation and Johnson & Johnson — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-07-15.

CVX

Chevron Corporation · Energy

$175.91

-3.4% upside to fair value

Grade D

JNJ

Johnson & Johnson · Healthcare

$253.85

-21.7% upside to fair value

Grade D High Quality

QuantHub Verdict

CVX has more upside to fair value (-3.4%). JNJ trades at a lower forward P/E (29.3x). These are model outputs — not personalized investment advice. See all research →

Valuation & Fundamentals

Metric	CVX	JNJ
Current Price	$175.91	$253.85
Fair Value Estimate	$169.96	$198.76
Upside to Fair Value	-3.4%	-21.7%
Market Cap	$350.3B	$611.1B
Forward P/E	30.4x	29.3x
EV / EBITDA	9.4x	19.2x
Price / Sales	1.9x	6.3x
Price / FCF	26.2x	34.3x
Revenue Growth YoY	+3.2%	+9.9%
Gross Margin	25.4%	69.1%
Operating Margin	8.4%	26.9%
Return on Equity	6.2%	26.3%
Dividend Yield	0%	0%
FCF Yield	3.82%	2.91%
Analyst Consensus	Buy	Buy

Investment Thesis

CVX — Chevron Corporation

Chevron Corporation operates as a leading integrated oil and gas company within the energy sector, demonstrating medium business quality with a stable competitive position but facing earnings pressure as evidenced by a 36.9% decline in earnings in the most recent quarter. The stock trades at a premium valuation with a P/E trailing and forward of 30.38, EV/EBITDA of 9.41, and a P/FCF of 26.2, refl…

JNJ — Johnson & Johnson

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	CVX	JNJ
Zone Low	$127.47	$149.07
Zone High	$144.47	$168.95
In Buy Zone?	No	No

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