JNJ vs TSM: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Johnson & Johnson · Healthcare
$238.46
-11.8% upside to fair value
Med Conviction
Grade C+
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
TSM has more upside to fair value
(-3.8%).
JNJ trades at a lower forward P/E
(20.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
TSM |
| Current Price |
$238.46 |
$365.90 |
| Fair Value Estimate |
$210.28 |
$352.00 |
| Upside to Fair Value |
-11.8%
|
-3.8%
|
| Market Cap |
$574.7B |
$1,897.7B |
| Forward P/E |
20.2x
|
26.0x
|
| EV / EBITDA |
13.3x
|
18.1x
|
| Price / Sales |
6.2x
|
13.3x
|
| Price / FCF |
29.4x
|
54.0x
|
| Revenue Growth YoY |
+6.1%
|
+33.0%
|
| Gross Margin |
72.8%
|
59.9%
|
| Operating Margin |
27.2%
|
50.8%
|
| Return on Equity |
32.87%
|
35.1%
|
| Dividend Yield |
2.18% |
1.05% |
| FCF Yield |
3.4%
|
1.85%
|
| Analyst Consensus |
Moderate Buy
|
Strong Buy
|
Investment Thesis
Johnson & Johnson is a high-quality healthcare conglomerate focused exclusively on Innovative Medicine and MedTech following the Kenvue spin-off. The company delivered $94.2B in FY2025 revenue with 6% operational growth, generated $19.7B in free cash flow, and guided for $99.5-100.5B in 2026 operational sales (above consensus). However, at $238 the stock trades at a P/S of 6.15x, well above the 5…
TSMC remains the single most critical company in the global semiconductor supply chain, manufacturing virtually every leading-edge AI chip for NVIDIA, Apple, AMD, and the hyperscalers. The company delivered exceptional 2025 results with 33% revenue growth and 50% net income growth, driven by HPC surging to 55% of Q4 revenue. At the 3nm node, TSMC maintains production yields of 70-80% versus Samsu…
Accumulation Zones
| Metric |
JNJ |
TSM |
| Zone Low |
$157.71 |
$265.00 |
| Zone High |
$178.74 |
$310.00 |
| In Buy Zone? |
No
|
No
|