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 2026-05-04.
Johnson & Johnson · Healthcare
$230.69
+14.0% upside to fair value
Grade C
High Quality
VS
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
JNJ has more upside to fair value
(+14.0%).
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 |
RTX |
| Current Price |
$230.69 |
$172.90 |
| Fair Value Estimate |
$263.05 |
$136.05 |
| Upside to Fair Value |
+14.0%
|
-21.3%
|
| Market Cap |
$555.9B |
$232.8B |
| Forward P/E |
26.8x
|
32.1x
|
| EV / EBITDA |
18.5x
|
19.2x
|
| Price / Sales |
5.8x
|
2.6x
|
| Price / FCF |
28.2x
|
27.9x
|
| Revenue Growth YoY |
+9.9%
|
+8.7%
|
| Gross Margin |
69.1%
|
20.2%
|
| Operating Margin |
26.9%
|
10.4%
|
| Return on Equity |
26.5%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.54%
|
3.59%
|
| Analyst Consensus |
Buy
|
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,…
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
| Metric |
JNJ |
RTX |
| Zone Low |
$197.29 |
$102.04 |
| Zone High |
$223.59 |
$115.64 |
| In Buy Zone? |
No
|
No
|