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 2026-06-20.
Johnson & Johnson · Healthcare
$228.39
-20.6% 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 |
$228.39 |
$464.61 |
| Fair Value Estimate |
$181.44 |
$498.27 |
| Upside to Fair Value |
-20.6%
|
+7.2%
|
| Market Cap |
$549.8B |
$172.7B |
| Forward P/E |
26.3x
|
25.2x
|
| EV / EBITDA |
17.4x
|
19.1x
|
| Price / Sales |
5.7x
|
3.8x
|
| Price / FCF |
30.9x
|
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 |
3.24%
|
3.91%
|
| Analyst Consensus |
Buy
|
Strong 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…
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 |
$136.08 |
$373.70 |
| Zone High |
$154.22 |
$423.53 |
| In Buy Zone? |
No
|
No
|