HON vs JNJ: Which Is the Better Buy?
Side-by-side comparison of Honeywell International Inc. and Johnson & Johnson — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-15.
Honeywell International Inc. · Industrials
$222.25
-5.5% upside to fair value
Grade D
High Quality
VS
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
HON has more upside to fair value
(-5.5%).
HON trades at a lower forward P/E
(15.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HON |
JNJ |
| Current Price |
$222.25 |
$253.85 |
| Fair Value Estimate |
$210.05 |
$198.76 |
| Upside to Fair Value |
-5.5%
|
-21.7%
|
| Market Cap |
$70.4B |
$611.1B |
| Forward P/E |
15.7x
|
29.3x
|
| EV / EBITDA |
13.1x
|
19.2x
|
| Price / Sales |
1.9x
|
6.3x
|
| Price / FCF |
17.1x
|
34.3x
|
| Revenue Growth YoY |
-6.9%
|
+9.9%
|
| Gross Margin |
36.9%
|
69.1%
|
| Operating Margin |
14.9%
|
26.9%
|
| Return on Equity |
23.6%
|
26.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
5.84%
|
2.91%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Honeywell International Inc. operates as a diversified industrial conglomerate with a strong presence in multiple sectors including aerospace, building technologies, and performance materials. The company demonstrates high business quality with a durable competitive moat supported by strong margins, a 23.6% return on equity, and solid free cash flow generation of $16.78 per share. However, recent…
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 |
HON |
JNJ |
| Zone Low |
$157.54 |
$149.07 |
| Zone High |
$178.54 |
$168.95 |
| In Buy Zone? |
No
|
No
|