JNJ vs MRK: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-15.
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
VS
Merck & Co., Inc. · Healthcare
$113.87
-12.1% upside to fair value
Grade D
High Quality
QuantHub Verdict
MRK has more upside to fair value
(-12.1%).
JNJ trades at a lower forward P/E
(29.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
MRK |
| Current Price |
$253.85 |
$113.87 |
| Fair Value Estimate |
$198.76 |
$100.14 |
| Upside to Fair Value |
-21.7%
|
-12.1%
|
| Market Cap |
$611.1B |
$281.2B |
| Forward P/E |
29.3x
|
32.0x
|
| EV / EBITDA |
19.2x
|
17.3x
|
| Price / Sales |
6.3x
|
4.3x
|
| Price / FCF |
34.3x
|
19.9x
|
| Revenue Growth YoY |
+9.9%
|
+4.3%
|
| Gross Margin |
69.1%
|
75.9%
|
| Operating Margin |
26.9%
|
27.6%
|
| Return on Equity |
26.3%
|
17.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.91%
|
5.02%
|
| Analyst Consensus |
Buy
|
Hold
|
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,…
Merck & Co., Inc. is a leading global healthcare company specializing in pharmaceuticals, vaccines, and animal health products. Its business quality is high, supported by a durable competitive moat anchored in the dominant global position of Keytruda in PD-1/PD-L1 oncology, a strong vaccines portfolio including Gardasil, and scale in R&D and manufacturing. The company benefits from a seasoned lea…
Accumulation Zones
| Metric |
JNJ |
MRK |
| Zone Low |
$149.07 |
$75.11 |
| Zone High |
$168.95 |
$85.12 |
| In Buy Zone? |
No
|
No
|