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 2026-07-20.
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
VS
McDonald's Corporation · Consumer Cyclical
$267.71
+20.6% upside to fair value
Med Conviction
Grade C+
High Quality
QuantHub Verdict
MCD has more upside to fair value
(+20.6%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
JNJ |
MCD |
| Current Price |
$253.85 |
$267.71 |
| Fair Value Estimate |
$198.76 |
$322.85 |
| Upside to Fair Value |
-21.7%
|
+20.6%
|
| Market Cap |
$611.1B |
$190.2B |
| Forward P/E |
29.3x
|
—
|
| EV / EBITDA |
19.2x
|
16.4x
|
| Price / Sales |
6.3x
|
6.9x
|
| Price / FCF |
34.3x
|
27.0x
|
| Revenue Growth YoY |
+9.9%
|
+9.4%
|
| Gross Margin |
69.1%
|
57.4%
|
| Operating Margin |
26.9%
|
46.0%
|
| Return on Equity |
26.3%
|
-433.9%
|
| Dividend Yield |
0% |
2.75% |
| FCF Yield |
2.91%
|
3.7%
|
| Analyst Consensus |
Buy
|
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,…
McDonald's is a global quick-service restaurant franchisor and real-estate platform whose approximately 95% franchised restaurant base generates unusually high-margin, recurring royalty and rent income, supporting a 46.0% operating margin and 31.6% net margin. Business quality is high because its brand, global purchasing scale, nearly 29,000 drive-thrus, digital ecosystem and 210 million 90-day a…
Accumulation Zones
| Metric |
JNJ |
MCD |
| Zone Low |
$149.07 |
$242.14 |
| Zone High |
$168.95 |
$274.42 |
| In Buy Zone? |
No
|
Yes
|