JNJ vs MCD: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and McDonald's Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-09.
Johnson & Johnson · Healthcare
$230.69
+10.8% upside to fair value
Grade C
High Quality
VS
McDonald's Corporation · Consumer Cyclical
$275.75
+18.8% upside to fair value
Grade C
High Quality
QuantHub Verdict
MCD has more upside to fair value
(+18.8%).
MCD trades at a lower forward P/E
(22.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
MCD |
| Current Price |
$230.69 |
$275.75 |
| Fair Value Estimate |
$255.61 |
$327.62 |
| Upside to Fair Value |
+10.8%
|
+18.8%
|
| Market Cap |
$555.9B |
$196.0B |
| Forward P/E |
26.8x
|
22.6x
|
| EV / EBITDA |
18.5x
|
16.7x
|
| Price / Sales |
5.8x
|
7.1x
|
| Price / FCF |
28.2x
|
27.9x
|
| Revenue Growth YoY |
+9.9%
|
+9.4%
|
| Gross Margin |
69.1%
|
57.4%
|
| Operating Margin |
26.9%
|
46.0%
|
| Return on Equity |
26.5%
|
-434.0%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.54%
|
3.59%
|
| Analyst Consensus |
Buy
|
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,…
McDonald's Corporation operates a global quick-service restaurant business with a strong competitive moat driven by brand recognition, extensive franchising, and digital innovation. The company reported $26.9 billion in revenue for fiscal 2025, growing 4% year-over-year, with significant contributions from its International Operated Markets segment growing nearly 8%. Despite a high valuation regi…
Accumulation Zones
| Metric |
JNJ |
MCD |
| Zone Low |
$191.71 |
$245.72 |
| Zone High |
$217.27 |
$278.48 |
| In Buy Zone? |
No
|
Yes
|