JNJ vs TMO: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and Thermo Fisher Scientific 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
Thermo Fisher Scientific Inc. · Healthcare
$464.61
+7.2% upside to fair value
Grade A
High Quality
QuantHub Verdict
TMO has more upside to fair value
(+7.2%).
TMO trades at a lower forward P/E
(25.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
TMO |
| Current Price |
$253.85 |
$464.61 |
| Fair Value Estimate |
$198.76 |
$498.27 |
| Upside to Fair Value |
-21.7%
|
+7.2%
|
| Market Cap |
$611.1B |
$172.7B |
| Forward P/E |
29.3x
|
25.2x
|
| EV / EBITDA |
19.2x
|
19.1x
|
| Price / Sales |
6.3x
|
3.8x
|
| Price / FCF |
34.3x
|
25.6x
|
| Revenue Growth YoY |
+9.9%
|
+6.2%
|
| Gross Margin |
69.1%
|
39.4%
|
| Operating Margin |
26.9%
|
17.8%
|
| Return on Equity |
26.3%
|
13.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.91%
|
3.91%
|
| 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,…
Thermo Fisher Scientific is a leading healthcare company specializing in life science tools, diagnostics, and contract research and manufacturing services. It operates with a broad, multi-layered moat driven by scale, integration, and a long-tenured management team. The company exhibits solid fundamentals with a 13.3% ROE, 6.2% revenue growth, and 9.6% earnings growth in the most recent quarter. …
Accumulation Zones
| Metric |
JNJ |
TMO |
| Zone Low |
$149.07 |
$373.70 |
| Zone High |
$168.95 |
$423.53 |
| In Buy Zone? |
No
|
No
|