HD vs JNJ: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Johnson & Johnson — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
The Home Depot, Inc. · Consumer Cyclical
$292.18
+44.2% upside to fair value
Med Conviction
Grade B
High Quality
VS
Johnson & Johnson · Healthcare
$270.68
+5.7% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
HD has more upside to fair value
(+44.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
JNJ |
| Current Price |
$292.18 |
$270.68 |
| Fair Value Estimate |
$421.26 |
$286.05 |
| Upside to Fair Value |
+44.2%
|
+5.7%
|
| Market Cap |
$291.3B |
$652.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
14.7x
|
20.2x
|
| Price / Sales |
1.7x
|
6.7x
|
| Price / FCF |
19.2x
|
35.3x
|
| Revenue Growth YoY |
+5.7%
|
+6.6%
|
| Gross Margin |
33.2%
|
67.9%
|
| Operating Margin |
12.4%
|
26.8%
|
| Return on Equity |
102.7%
|
25.7%
|
| Dividend Yield |
3.18% |
1.95% |
| FCF Yield |
5.2%
|
2.83%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
The Home Depot is the largest home-improvement retailer in the United States, operating a network of roughly 2,300 stores supported by about 472,400 full-time employees, and serving both do-it-yourself homeowners and professional contractors through stores, homedepot.com, and specialty sites such as blinds.com. The business quality is high: it generates a 102.7% return on equity, a 33.2% trailing…
Johnson & Johnson is a 141,700-employee healthcare holding company operating two segments, Innovative Medicine (immunology, oncology, neuroscience, infectious disease, cardiovascular and metabolism, pulmonary hypertension) and MedTech (interventional solutions, orthopaedics, surgery, vision), founded in 1887 and headquartered in New Brunswick, New Jersey. Business quality is high on fundamentals:…
Accumulation Zones
| Metric |
HD |
JNJ |
| Zone Low |
$315.94 |
$214.54 |
| Zone High |
$358.07 |
$243.14 |
| In Buy Zone? |
Yes
|
No
|