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 2026-05-01.
Johnson & Johnson · Healthcare
$230.69
+10.8% upside to fair value
Grade C
High Quality
VS
Eli Lilly and Company · Healthcare
$934.34
+17.6% upside to fair value
Grade B
High Quality
QuantHub Verdict
LLY has more upside to fair value
(+17.6%).
JNJ trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
LLY |
| Current Price |
$230.69 |
$934.34 |
| Fair Value Estimate |
$255.61 |
$1,098.43 |
| Upside to Fair Value |
+10.8%
|
+17.6%
|
| Market Cap |
$555.9B |
$882.8B |
| Forward P/E |
26.8x
|
33.1x
|
| EV / EBITDA |
18.5x
|
27.9x
|
| Price / Sales |
5.8x
|
12.2x
|
| Price / FCF |
28.2x
|
65.0x
|
| Revenue Growth YoY |
+9.9%
|
+55.5%
|
| Gross Margin |
69.1%
|
82.7%
|
| Operating Margin |
26.9%
|
46.3%
|
| Return on Equity |
26.5%
|
101.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.54%
|
1.54%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Johnson & Johnson is a leading healthcare company focused on pharmaceuticals and medical devices following its consumer health spin-off. The business quality is high due to its durable competitive moat, diversified portfolio, and strong management with deep institutional knowledge. Despite a 52.4% decline in earnings in the most recent quarter, revenue grew 9.9% year-over-year in the same period,…
Eli Lilly and Company is a leading global pharmaceutical firm with a dominant position in the diabetes and obesity markets, driven by its blockbuster GLP-1 drugs Mounjaro and Zepbound which generated $36.5 billion in FY2025. The company reported $65.2 billion in total revenue for 2025, making it the top pharma by revenue globally. It exhibits high business quality with a durable competitive moat …
Accumulation Zones
| Metric |
JNJ |
LLY |
| Zone Low |
$191.71 |
$823.82 |
| Zone High |
$217.27 |
$933.67 |
| In Buy Zone? |
No
|
No
|