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 2026-07-15.
The Home Depot, Inc. · Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
VS
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
HD has more upside to fair value
(+34.6%).
HD trades at a lower forward P/E
(24.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
JNJ |
| Current Price |
$343.30 |
$253.85 |
| Fair Value Estimate |
$462.14 |
$198.76 |
| Upside to Fair Value |
+34.6%
|
-21.7%
|
| Market Cap |
$342.3B |
$611.1B |
| Forward P/E |
24.3x
|
29.3x
|
| EV / EBITDA |
16.5x
|
19.2x
|
| Price / Sales |
2.0x
|
6.3x
|
| Price / FCF |
23.9x
|
34.3x
|
| Revenue Growth YoY |
+4.8%
|
+9.9%
|
| Gross Margin |
33.1%
|
69.1%
|
| Operating Margin |
12.4%
|
26.9%
|
| Return on Equity |
113.3%
|
26.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.18%
|
2.91%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
The Home Depot, Inc. operates as a leading home improvement retailer in the consumer cyclical sector, leveraging a strong brand and cost advantages to maintain a durable competitive moat. Despite a modest revenue growth of 4.8% and a decline in earnings by 4.2% in the most recent quarter, the company exhibits exceptional profitability metrics including a 113.3% return on equity and solid margins …
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 |
HD |
JNJ |
| Zone Low |
$346.61 |
$149.07 |
| Zone High |
$392.82 |
$168.95 |
| In Buy Zone? |
Yes
|
No
|