JNJ vs PANW: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and Palo Alto Networks, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-22.
Johnson & Johnson · Healthcare
$230.69
+14.0% upside to fair value
Grade C
High Quality
VS
Palo Alto Networks, Inc. · Technology
$174.96
+15.2% upside to fair value
Grade B
High Quality
QuantHub Verdict
PANW has more upside to fair value
(+15.2%).
JNJ trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
PANW |
| Current Price |
$230.69 |
$174.96 |
| Fair Value Estimate |
$263.05 |
$201.61 |
| Upside to Fair Value |
+14.0%
|
+15.2%
|
| Market Cap |
$555.9B |
$119.2B |
| Forward P/E |
26.8x
|
94.9x
|
| EV / EBITDA |
18.5x
|
52.4x
|
| Price / Sales |
5.8x
|
12.1x
|
| Price / FCF |
28.2x
|
29.3x
|
| Revenue Growth YoY |
+9.9%
|
+14.9%
|
| Gross Margin |
69.1%
|
73.5%
|
| Operating Margin |
26.9%
|
14.4%
|
| Return on Equity |
26.5%
|
15.5%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.54%
|
3.41%
|
| 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,…
Palo Alto Networks is a leading cybersecurity company specializing in AI-driven cloud security platforms, subscription services, and hardware products. The company benefits from a durable competitive moat driven by its platform transformation under CEO Nikesh Arora, with over 50% of revenue from high-margin subscription services growing at 25.6% year-over-year in fiscal 2024. Despite a premium va…
Accumulation Zones
| Metric |
JNJ |
PANW |
| Zone Low |
$197.29 |
$151.21 |
| Zone High |
$223.59 |
$171.37 |
| In Buy Zone? |
No
|
No
|