ETN vs JNJ: Which Is the Better Buy?
Side-by-side comparison of Eaton Corporation plc and Johnson & Johnson — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-08-06.
Eaton Corporation plc · Industrials
$447.28
-9.5% upside to fair value
Med Conviction
Grade C+
VS
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
ETN has more upside to fair value
(-9.5%).
JNJ trades at a lower forward P/E
(29.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ETN |
JNJ |
| Current Price |
$447.28 |
$253.85 |
| Fair Value Estimate |
$405.00 |
$198.76 |
| Upside to Fair Value |
-9.5%
|
-21.7%
|
| Market Cap |
$173.7B |
$611.1B |
| Forward P/E |
33.2x
|
29.3x
|
| EV / EBITDA |
30.0x
|
19.2x
|
| Price / Sales |
5.8x
|
6.3x
|
| Price / FCF |
38.6x
|
34.3x
|
| Revenue Growth YoY |
+21.0%
|
+9.9%
|
| Gross Margin |
35.9%
|
69.1%
|
| Operating Margin |
17.7%
|
26.9%
|
| Return on Equity |
18.9%
|
26.3%
|
| Dividend Yield |
0.98% |
0% |
| FCF Yield |
2.59%
|
2.91%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Eaton is a 115-year-old power management company whose Electrical Americas, Electrical Global and Aerospace segments have become a core beneficiary of the same AI data-center, grid modernization and reshoring supercycle driving GE Vernova and Vertiv. Q2 2026 results were record-setting: revenue of $8.5 billion (up 21% year over year, 14% organic), adjusted EPS of $3.15, and segment margins of 23.…
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 |
ETN |
JNJ |
| Zone Low |
$305.00 |
$149.07 |
| Zone High |
$345.00 |
$168.95 |
| In Buy Zone? |
No
|
No
|