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 2026-07-17.
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$409.74
+45.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+45.0%).
JNJ trades at a lower forward P/E
(29.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
TSM |
| Current Price |
$253.85 |
$409.74 |
| Fair Value Estimate |
$198.76 |
$594.12 |
| Upside to Fair Value |
-21.7%
|
+45.0%
|
| Market Cap |
$611.1B |
$2,125.1B |
| Forward P/E |
29.3x
|
38.8x
|
| EV / EBITDA |
19.2x
|
17.6x
|
| Price / Sales |
6.3x
|
14.5x
|
| Price / FCF |
34.3x
|
58.4x
|
| Revenue Growth YoY |
+9.9%
|
+36.0%
|
| Gross Margin |
69.1%
|
61.9%
|
| Operating Margin |
26.9%
|
53.2%
|
| Return on Equity |
26.3%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.91%
|
1.71%
|
| 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,…
Taiwan Semiconductor Manufacturing Company Limited (TSM) is a leading semiconductor foundry specializing in advanced chip manufacturing technologies. The company exhibits high business quality with a durable competitive moat driven by cost advantages, intangible assets, and strong brand recognition. It demonstrates robust profitability with a net margin of 47.0% and a return on equity of 36.9%. R…
Accumulation Zones
| Metric |
JNJ |
TSM |
| Zone Low |
$149.07 |
$445.59 |
| Zone High |
$168.95 |
$505.00 |
| In Buy Zone? |
No
|
Yes
|