JNJ vs NKE: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and NIKE, Inc. — 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
NIKE, Inc. · Consumer Cyclical
$42.62
+45.5% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
NKE has more upside to fair value
(+45.5%).
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 |
NKE |
| Current Price |
$238.46 |
$42.62 |
| Fair Value Estimate |
$210.28 |
$62.00 |
| Upside to Fair Value |
-11.8%
|
+45.5%
|
| Market Cap |
$574.7B |
$63.0B |
| Forward P/E |
20.2x
|
27.9x
|
| EV / EBITDA |
13.3x
|
20.7x
|
| Price / Sales |
6.2x
|
1.4x
|
| Price / FCF |
29.4x
|
19.4x
|
| Revenue Growth YoY |
+6.1%
|
-9.8%
|
| Gross Margin |
72.8%
|
42.7%
|
| Operating Margin |
27.2%
|
8.0%
|
| Return on Equity |
32.87%
|
24.4%
|
| Dividend Yield |
2.18% |
3.8% |
| FCF Yield |
3.4%
|
5.2%
|
| 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…
Nike is the world's largest athletic footwear and apparel company with $46.3B in FY2025 revenue, operating across 190+ countries with the Nike, Jordan, and Converse brands. The stock trades near its 9-year low at $42.62 after an 11% single-day crash following a Q3 FY2026 earnings report that showed 35% net income decline and weak Q4 guidance calling for a further 2-4% revenue decline. FY2025 reve…
Accumulation Zones
| Metric |
JNJ |
NKE |
| Zone Low |
$157.71 |
$44.00 |
| Zone High |
$178.74 |
$50.00 |
| In Buy Zone? |
No
|
Yes
|