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 2026-05-20.
The Home Depot, Inc. · Consumer Cyclical
$302.44
+22.0% upside to fair value
Med Conviction
Grade B+
VS
Johnson & Johnson · Healthcare
$230.69
+10.8% upside to fair value
Grade C
High Quality
QuantHub Verdict
HD has more upside to fair value
(+22.0%).
HD trades at a lower forward P/E
(20.5x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
JNJ |
| Current Price |
$302.44 |
$230.69 |
| Fair Value Estimate |
$369.00 |
$255.61 |
| Upside to Fair Value |
+22.0%
|
+10.8%
|
| Market Cap |
$301.2B |
$555.9B |
| Forward P/E |
20.5x
|
26.8x
|
| EV / EBITDA |
16.5x
|
18.5x
|
| Price / Sales |
2.0x
|
5.8x
|
| Price / FCF |
26.6x
|
28.2x
|
| Revenue Growth YoY |
+4.8%
|
+9.9%
|
| Gross Margin |
33.3%
|
69.1%
|
| Operating Margin |
12.7%
|
26.9%
|
| Return on Equity |
110.5%
|
26.5%
|
| Dividend Yield |
2.72% |
0% |
| FCF Yield |
3.75%
|
3.54%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and an expanding Pro contractor segment bolstered by the SRS Distribution acquisition. Q1 FY2026 results released May 19 beat both the top and bottom line, with revenue of $41.77B up 4.8% year over year and adjusted EPS of $3.43 versus the $3.41 consensus. Comp sales grew only 0.6% howe…
Johnson & Johnson is a leading healthcare company focused on pharmaceuticals and medical devices following its consumer health spin-off. The business quality is high due to its durable competitive moat, diversified portfolio, and strong management with deep institutional knowledge. Despite a 52.4% decline in earnings in the most recent quarter, revenue grew 9.9% year-over-year in the same period,…
Accumulation Zones
| Metric |
HD |
JNJ |
| Zone Low |
$276.75 |
$191.71 |
| Zone High |
$313.65 |
$217.27 |
| In Buy Zone? |
Yes
|
No
|