JNJ vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-29.
Johnson & Johnson · Healthcare
$230.69
+10.8% upside to fair value
Grade C
High Quality
VS
Microsoft Corporation · Technology
$429.25
-1.3% upside to fair value
Grade B
High Quality
QuantHub Verdict
JNJ has more upside to fair value
(+10.8%).
MSFT trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
MSFT |
| Current Price |
$230.69 |
$429.25 |
| Fair Value Estimate |
$255.61 |
$423.82 |
| Upside to Fair Value |
+10.8%
|
-1.3%
|
| Market Cap |
$555.9B |
$3,187.4B |
| Forward P/E |
26.8x
|
26.8x
|
| EV / EBITDA |
18.5x
|
17.2x
|
| Price / Sales |
5.8x
|
10.4x
|
| Price / FCF |
28.2x
|
41.2x
|
| Revenue Growth YoY |
+9.9%
|
+16.7%
|
| Gross Margin |
69.1%
|
68.6%
|
| Operating Margin |
26.9%
|
46.7%
|
| Return on Equity |
26.5%
|
33.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.54%
|
2.43%
|
| Analyst Consensus |
Buy
|
Strong 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,…
Microsoft Corporation is a leading technology company specializing in software infrastructure, cloud computing, and productivity solutions. The company benefits from a high-quality business model characterized by durable competitive moats including strong switching costs and intangible assets such as its brand and cloud infrastructure. Under CEO Satya Nadella's leadership since 2014, Microsoft ha…
Accumulation Zones
| Metric |
JNJ |
MSFT |
| Zone Low |
$191.71 |
$317.87 |
| Zone High |
$217.27 |
$360.25 |
| In Buy Zone? |
No
|
No
|