JNJ vs MS: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and Morgan Stanley — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
VS
Morgan Stanley · Financial Services
$218.37
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
MS has more upside to fair value
(+45.0%).
MS trades at a lower forward P/E
(23.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
MS |
| Current Price |
$253.85 |
$218.37 |
| Fair Value Estimate |
$198.76 |
$316.64 |
| Upside to Fair Value |
-21.7%
|
+45.0%
|
| Market Cap |
$611.1B |
$344.4B |
| Forward P/E |
29.3x
|
23.6x
|
| EV / EBITDA |
19.2x
|
9.8x
|
| Price / Sales |
6.3x
|
2.7x
|
| Price / FCF |
34.3x
|
-327.4x
|
| Revenue Growth YoY |
+9.9%
|
+22.4%
|
| Gross Margin |
69.1%
|
56.6%
|
| Operating Margin |
26.9%
|
28.4%
|
| Return on Equity |
26.3%
|
23.4%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.91%
|
—
|
| 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,…
Morgan Stanley is a leading global financial services firm specializing in capital markets, wealth management, and investment banking. The company demonstrates high business quality with a strong return on equity of 23.4% and robust revenue growth of 22.4% in the most recent quarter, alongside impressive earnings growth of 57.7% in the same period. Its gross margin of 56.6% and net margin of 20.2…
Accumulation Zones
| Metric |
JNJ |
MS |
| Zone Low |
$149.07 |
$237.48 |
| Zone High |
$168.95 |
$269.14 |
| In Buy Zone? |
No
|
Yes
|