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 2026-07-15.
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
VS
Palo Alto Networks, Inc. · Technology
$287.78
+2.9% upside to fair value
Grade B
High Quality
QuantHub Verdict
PANW has more upside to fair value
(+2.9%).
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 |
PANW |
| Current Price |
$253.85 |
$287.78 |
| Fair Value Estimate |
$198.76 |
$296.19 |
| Upside to Fair Value |
-21.7%
|
+2.9%
|
| Market Cap |
$611.1B |
$196.1B |
| Forward P/E |
29.3x
|
248.9x
|
| EV / EBITDA |
19.2x
|
85.9x
|
| Price / Sales |
6.3x
|
18.5x
|
| Price / FCF |
34.3x
|
45.7x
|
| Revenue Growth YoY |
+9.9%
|
+31.1%
|
| Gross Margin |
69.1%
|
71.9%
|
| Operating Margin |
26.9%
|
9.6%
|
| Return on Equity |
26.3%
|
6.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.91%
|
2.19%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
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,…
Palo Alto Networks is a leading cybersecurity company specializing in next-generation security platforms with a strong subscription and support revenue base comprising approximately 81% of total revenue. The company benefits from a wide and expanding competitive moat driven by its AI- and platform-driven cybersecurity solutions, led by a seasoned management team. Despite strong revenue growth of …
Accumulation Zones
| Metric |
JNJ |
PANW |
| Zone Low |
$149.07 |
$222.14 |
| Zone High |
$168.95 |
$251.76 |
| In Buy Zone? |
No
|
No
|