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 2026-04-11.
Honeywell International Inc. · Industrials
$235.04
-9.9% 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
HON has more upside to fair value
(-9.9%).
JNJ trades at a lower forward P/E
(20.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HON |
JNJ |
| Current Price |
$235.04 |
$238.46 |
| Fair Value Estimate |
$211.73 |
$210.28 |
| Upside to Fair Value |
-9.9%
|
-11.8%
|
| Market Cap |
$149.4B |
$574.7B |
| Forward P/E |
22.3x
|
20.2x
|
| EV / EBITDA |
16.9x
|
13.3x
|
| Price / Sales |
4.0x
|
6.2x
|
| Price / FCF |
27.7x
|
29.4x
|
| Revenue Growth YoY |
-2.7%
|
+6.1%
|
| Gross Margin |
36.9%
|
72.8%
|
| Operating Margin |
17.7%
|
27.2%
|
| Return on Equity |
33.28%
|
32.87%
|
| Dividend Yield |
1.92% |
2.18% |
| FCF Yield |
3.61%
|
3.4%
|
| Analyst Consensus |
Buy
|
Moderate Buy
|
Investment Thesis
Honeywell is a diversified industrial conglomerate in the final stages of a transformative three-way separation into Honeywell Aerospace, Solstice Advanced Materials, and a retained Automation entity, targeting Q3 2026 completion. The business generated 33% ROE and $5.4B in free cash flow on $37.4B revenue in FY2025, supported by a record $37B backlog with 23% organic order growth in Q4. At $235 …
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 |
HON |
JNJ |
| Zone Low |
$158.80 |
$157.71 |
| Zone High |
$179.97 |
$178.74 |
| In Buy Zone? |
No
|
No
|