JNJ vs RTX: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and RTX Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-06-20.
Johnson & Johnson · Healthcare
$228.39
-20.6% upside to fair value
Grade D
High Quality
VS
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
QuantHub Verdict
JNJ has more upside to fair value
(-20.6%).
JNJ trades at a lower forward P/E
(26.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
RTX |
| Current Price |
$228.39 |
$185.60 |
| Fair Value Estimate |
$181.44 |
$138.81 |
| Upside to Fair Value |
-20.6%
|
-25.2%
|
| Market Cap |
$549.8B |
$249.9B |
| Forward P/E |
26.3x
|
34.3x
|
| EV / EBITDA |
17.4x
|
18.3x
|
| Price / Sales |
5.7x
|
2.8x
|
| Price / FCF |
30.9x
|
29.9x
|
| Revenue Growth YoY |
+9.9%
|
+8.7%
|
| Gross Margin |
69.1%
|
20.2%
|
| Operating Margin |
26.9%
|
10.9%
|
| Return on Equity |
26.3%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.24%
|
3.34%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Johnson & Johnson is a leading global healthcare company focused on innovative medicine and MedTech following the Kenvue consumer spin-off. It benefits from a durable competitive moat with strong market positions in pharmaceuticals and medical devices, supported by a long-tenured management team and disciplined capital allocation. However, the stock is currently very expensive, trading approximat…
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue grow…
Accumulation Zones
| Metric |
JNJ |
RTX |
| Zone Low |
$136.08 |
$104.11 |
| Zone High |
$154.22 |
$117.99 |
| In Buy Zone? |
No
|
No
|