JNJ vs LLY: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and Eli Lilly and 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
Eli Lilly and Company · Healthcare
$1,179.09
+31.7% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
LLY has more upside to fair value
(+31.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
JNJ |
LLY |
| Current Price |
$253.85 |
$1,179.09 |
| Fair Value Estimate |
$198.76 |
$1,552.32 |
| Upside to Fair Value |
-21.7%
|
+31.7%
|
| Market Cap |
$611.1B |
$1,110.4B |
| Forward P/E |
29.3x
|
—
|
| EV / EBITDA |
19.2x
|
34.3x
|
| Price / Sales |
6.3x
|
14.6x
|
| Price / FCF |
34.3x
|
77.7x
|
| Revenue Growth YoY |
+9.9%
|
+55.5%
|
| Gross Margin |
69.1%
|
83.5%
|
| Operating Margin |
26.9%
|
45.9%
|
| Return on Equity |
26.3%
|
101.3%
|
| Dividend Yield |
0% |
0.55% |
| FCF Yield |
2.91%
|
1.29%
|
| 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,…
Eli Lilly is a global biopharma company whose exceptionally profitable cardiometabolic franchises, led by Mounjaro and Zepbound, are driving a high-quality growth phase: revenue rose 55.5% year over year and earnings rose 168.0% year over year in the most recent quarter, while gross, operating, and net margins were 83.5%, 45.9%, and 35.0%, respectively. Business quality is high because tirzepatid…
Accumulation Zones
| Metric |
JNJ |
LLY |
| Zone Low |
$149.07 |
$1,164.24 |
| Zone High |
$168.95 |
$1,319.47 |
| In Buy Zone? |
No
|
Yes
|