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 2026-04-11.
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
VS
Johnson & Johnson · Healthcare
$238.46
-11.8% upside to fair value
Med Conviction
Grade C+
QuantHub Verdict
HD has more upside to fair value
(+12.1%).
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 |
HD |
JNJ |
| Current Price |
$337.34 |
$238.46 |
| Fair Value Estimate |
$378.00 |
$210.28 |
| Upside to Fair Value |
+12.1%
|
-11.8%
|
| Market Cap |
$336.0B |
$574.7B |
| Forward P/E |
23.0x
|
20.2x
|
| EV / EBITDA |
18.1x
|
13.3x
|
| Price / Sales |
2.3x
|
6.2x
|
| Price / FCF |
29.7x
|
29.4x
|
| Revenue Growth YoY |
+3.2%
|
+6.1%
|
| Gross Margin |
33.3%
|
72.8%
|
| Operating Margin |
12.7%
|
27.2%
|
| Return on Equity |
110.5%
|
32.87%
|
| Dividend Yield |
2.44% |
2.18% |
| FCF Yield |
3.37%
|
3.4%
|
| Analyst Consensus |
Buy
|
Moderate Buy
|
Investment Thesis
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and a rapidly growing Pro contractor segment bolstered by the SRS Distribution acquisition. The stock has declined 21% from its $427 high to $337, but now trades at 2.28x P/S, near the 5-year median of 2.31x, and 26.5x P/E which is above the 5-year median of 23.5x. EPS declined 4.6% in …
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 |
HD |
JNJ |
| Zone Low |
$285.00 |
$157.71 |
| Zone High |
$320.00 |
$178.74 |
| In Buy Zone? |
No
|
No
|