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 2026-09-26.
Johnson & Johnson · Healthcare
$270.68
+5.7% upside to fair value
Med Conviction
Grade C
High Quality
VS
Eli Lilly and Company · Healthcare
$1,183.72
+2.1% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
JNJ has more upside to fair value
(+5.7%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
LLY |
| Current Price |
$270.68 |
$1,183.72 |
| Fair Value Estimate |
$286.05 |
$1,208.00 |
| Upside to Fair Value |
+5.7%
|
+2.1%
|
| Market Cap |
$652.3B |
$1,114.8B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
20.2x
|
26.8x
|
| Price / Sales |
6.7x
|
14.0x
|
| Price / FCF |
35.3x
|
52.7x
|
| Revenue Growth YoY |
+6.6%
|
+47.7%
|
| Gross Margin |
67.9%
|
83.4%
|
| Operating Margin |
26.8%
|
49.7%
|
| Return on Equity |
25.7%
|
92.6%
|
| Dividend Yield |
1.95% |
0.57% |
| FCF Yield |
2.83%
|
1.9%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Johnson & Johnson is a 141,700-employee healthcare holding company operating two segments, Innovative Medicine (immunology, oncology, neuroscience, infectious disease, cardiovascular and metabolism, pulmonary hypertension) and MedTech (interventional solutions, orthopaedics, surgery, vision), founded in 1887 and headquartered in New Brunswick, New Jersey. Business quality is high on fundamentals:…
Eli Lilly is a global pharmaceutical company whose incretin franchise, led by Mounjaro and Zepbound, has become the dominant growth engine in diabetes and obesity care. The business quality is high: TTM gross margin is 83.4%, TTM operating margin is 49.7%, TTM net margin is 33.5%, and ROE is 92.6%, while revenue grew 47.7% and earnings grew 25.3% in the most recent quarter on a year-over-year bas…
Accumulation Zones
| Metric |
JNJ |
LLY |
| Zone Low |
$214.54 |
$906.00 |
| Zone High |
$243.14 |
$1,026.80 |
| In Buy Zone? |
No
|
No
|