JNJ vs UNH: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and UnitedHealth Group Incorporated — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-22.
Johnson & Johnson · Healthcare
$230.69
+10.8% upside to fair value
Grade C
High Quality
VS
UnitedHealth Group Incorporated · Healthcare
$353.52
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
UNH has more upside to fair value
(+45.0%).
UNH trades at a lower forward P/E
(26.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
UNH |
| Current Price |
$230.69 |
$353.52 |
| Fair Value Estimate |
$255.61 |
$512.60 |
| Upside to Fair Value |
+10.8%
|
+45.0%
|
| Market Cap |
$555.9B |
$320.9B |
| Forward P/E |
26.8x
|
26.7x
|
| EV / EBITDA |
18.5x
|
16.1x
|
| Price / Sales |
5.8x
|
0.7x
|
| Price / FCF |
28.2x
|
16.3x
|
| Revenue Growth YoY |
+9.9%
|
+2.0%
|
| Gross Margin |
69.1%
|
18.8%
|
| Operating Margin |
26.9%
|
4.2%
|
| Return on Equity |
26.5%
|
12.4%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.54%
|
6.13%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Johnson & Johnson is a leading healthcare company focused on pharmaceuticals and medical devices following its consumer health spin-off. The business quality is high due to its durable competitive moat, diversified portfolio, and strong management with deep institutional knowledge. Despite a 52.4% decline in earnings in the most recent quarter, revenue grew 9.9% year-over-year in the same period,…
UnitedHealth Group Incorporated operates as a leading healthcare company with two main platforms: UnitedHealthcare, providing health benefits coverage, and Optum, offering information and technology services. The company benefits from a durable competitive moat due to its scale, integrated platforms, and broad market reach serving over 170 million consumers. Despite strong revenue growth of 12% y…
Accumulation Zones
| Metric |
JNJ |
UNH |
| Zone Low |
$191.71 |
$384.45 |
| Zone High |
$217.27 |
$435.71 |
| In Buy Zone? |
No
|
Yes
|