JNJ vs KO: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and The Coca-Cola Company — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
VS
The Coca-Cola Company · Consumer Defensive
$84.92
-10.2% upside to fair value
Grade C
High Quality
QuantHub Verdict
KO has more upside to fair value
(-10.2%).
KO trades at a lower forward P/E
(26.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
KO |
| Current Price |
$253.85 |
$84.92 |
| Fair Value Estimate |
$198.76 |
$76.30 |
| Upside to Fair Value |
-21.7%
|
-10.2%
|
| Market Cap |
$611.1B |
$365.4B |
| Forward P/E |
29.3x
|
26.6x
|
| EV / EBITDA |
19.2x
|
20.7x
|
| Price / Sales |
6.3x
|
7.4x
|
| Price / FCF |
34.3x
|
29.1x
|
| Revenue Growth YoY |
+9.9%
|
+12.1%
|
| Gross Margin |
69.1%
|
61.7%
|
| Operating Margin |
26.9%
|
29.3%
|
| Return on Equity |
26.3%
|
43.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.91%
|
3.44%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
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,…
The Coca-Cola Company is a leading global beverage company specializing in non-alcoholic drinks with a durable competitive moat driven by its strong brand and extensive distribution network. The business quality is high, evidenced by a 43.6% return on equity, robust gross margin of 61.7%, and solid revenue and earnings growth of 12.1% and 17.8% respectively in the most recent quarter. Despite the…
Accumulation Zones
| Metric |
JNJ |
KO |
| Zone Low |
$149.07 |
$57.22 |
| Zone High |
$168.95 |
$64.85 |
| In Buy Zone? |
No
|
No
|