DHR vs JNJ: Which Is the Better Buy?
Side-by-side comparison of Danaher Corporation and Johnson & Johnson — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-15.
Danaher Corporation · Healthcare
$195.98
+7.9% 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
DHR has more upside to fair value
(+7.9%).
JNJ trades at a lower forward P/E
(29.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
DHR |
JNJ |
| Current Price |
$195.98 |
$253.85 |
| Fair Value Estimate |
$211.54 |
$198.76 |
| Upside to Fair Value |
+7.9%
|
-21.7%
|
| Market Cap |
$138.7B |
$611.1B |
| Forward P/E |
37.8x
|
29.3x
|
| EV / EBITDA |
22.8x
|
19.2x
|
| Price / Sales |
5.6x
|
6.3x
|
| Price / FCF |
26.2x
|
34.3x
|
| Revenue Growth YoY |
+3.7%
|
+9.9%
|
| Gross Margin |
60.7%
|
69.1%
|
| Operating Margin |
21.0%
|
26.9%
|
| Return on Equity |
7.1%
|
26.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.81%
|
2.91%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Danaher Corporation operates in the healthcare sector, specifically in medical diagnostics and research, delivering high-quality products with a durable competitive moat supported by strong margins and consistent earnings growth. The company trades at a trailing and forward P/E of 37.76, which is relatively high but justified by its stable revenue growth of 3.7% and earnings growth of 7.9% in the…
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 |
DHR |
JNJ |
| Zone Low |
$158.66 |
$149.07 |
| Zone High |
$179.81 |
$168.95 |
| In Buy Zone? |
No
|
No
|