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 2026-09-25.
Johnson & Johnson · Healthcare
$270.68
+5.7% upside to fair value
Med Conviction
Grade C
High Quality
VS
RTX Corporation · Industrials
$193.54
+33.0% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
RTX has more upside to fair value
(+33.0%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
RTX |
| Current Price |
$270.68 |
$193.54 |
| Fair Value Estimate |
$286.05 |
$257.36 |
| Upside to Fair Value |
+5.7%
|
+33.0%
|
| Market Cap |
$652.3B |
$260.9B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
20.2x
|
18.1x
|
| Price / Sales |
6.7x
|
2.8x
|
| Price / FCF |
35.3x
|
21.7x
|
| Revenue Growth YoY |
+6.6%
|
+14.5%
|
| Gross Margin |
67.9%
|
20.3%
|
| Operating Margin |
26.8%
|
11.2%
|
| Return on Equity |
25.7%
|
11.8%
|
| Dividend Yield |
1.95% |
1.46% |
| FCF Yield |
2.83%
|
4.6%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Johnson & Johnson is a 141,700-employee healthcare holding company operating two segments, Innovative Medicine (immunology, oncology, neuroscience, infectious disease, cardiovascular and metabolism, pulmonary hypertension) and MedTech (interventional solutions, orthopaedics, surgery, vision), founded in 1887 and headquartered in New Brunswick, New Jersey. Business quality is high on fundamentals:…
RTX Corporation is a $260.85 billion aerospace and defense conglomerate operating three segments — Collins Aerospace, Pratt & Whitney, and Raytheon — serving commercial aviation, military, and government customers worldwide with 180,000 employees. The business quality is high: it holds intangible-asset and switching-cost advantages rooted in long-cycle engine programs, proprietary defense electro…
Accumulation Zones
| Metric |
JNJ |
RTX |
| Zone Low |
$214.54 |
$193.02 |
| Zone High |
$243.14 |
$218.76 |
| In Buy Zone? |
No
|
Yes
|