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 2026-04-11.
Johnson & Johnson · Healthcare
$238.46
-11.8% upside to fair value
Med Conviction
Grade C+
VS
McDonald's Corporation · Consumer Cyclical
$305.68
+4.7% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
MCD has more upside to fair value
(+4.7%).
JNJ trades at a lower forward P/E
(20.2x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
JNJ |
MCD |
| Current Price |
$238.46 |
$305.68 |
| Fair Value Estimate |
$210.28 |
$320.00 |
| Upside to Fair Value |
-11.8%
|
+4.7%
|
| Market Cap |
$574.7B |
$218.1B |
| Forward P/E |
20.2x
|
24.5x
|
| EV / EBITDA |
13.3x
|
18.6x
|
| Price / Sales |
6.2x
|
8.1x
|
| Price / FCF |
29.4x
|
30.3x
|
| Revenue Growth YoY |
+6.1%
|
+3.7%
|
| Gross Margin |
72.8%
|
57.4%
|
| Operating Margin |
27.2%
|
46.1%
|
| Return on Equity |
32.87%
|
—
|
| Dividend Yield |
2.18% |
2.4% |
| FCF Yield |
3.4%
|
3.3%
|
| Analyst Consensus |
Moderate Buy
|
Buy
|
Investment Thesis
Johnson & Johnson is a high-quality healthcare conglomerate focused exclusively on Innovative Medicine and MedTech following the Kenvue spin-off. The company delivered $94.2B in FY2025 revenue with 6% operational growth, generated $19.7B in free cash flow, and guided for $99.5-100.5B in 2026 operational sales (above consensus). However, at $238 the stock trades at a P/S of 6.15x, well above the 5…
McDonald's operates the world's largest quick-service restaurant franchise with over 40,000 locations across 100+ countries, generating $26.9B in FY2025 revenue with roughly 60% from franchised operations. The asset-light franchise model produces 46% operating margins and $7.2B in annual free cash flow. Revenue growth reaccelerated modestly to 3.7% in FY2025 from 1.7% in FY2024, driven by the Int…
Accumulation Zones
| Metric |
JNJ |
MCD |
| Zone Low |
$157.71 |
$240.00 |
| Zone High |
$178.74 |
$272.00 |
| In Buy Zone? |
No
|
No
|