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 2026-04-11.
Johnson & Johnson · Healthcare
$238.46
-11.8% upside to fair value
Med Conviction
Grade C+
VS
UnitedHealth Group Incorporated · Healthcare
$304.33
+41.3% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
UNH has more upside to fair value
(+41.3%).
UNH trades at a lower forward P/E
(15.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
UNH |
| Current Price |
$238.46 |
$304.33 |
| Fair Value Estimate |
$210.28 |
$430.00 |
| Upside to Fair Value |
-11.8%
|
+41.3%
|
| Market Cap |
$574.7B |
$276.2B |
| Forward P/E |
20.2x
|
15.1x
|
| EV / EBITDA |
13.3x
|
14.3x
|
| Price / Sales |
6.2x
|
0.6x
|
| Price / FCF |
29.4x
|
17.2x
|
| Revenue Growth YoY |
+6.1%
|
+11.8%
|
| Gross Margin |
72.8%
|
18.5%
|
| Operating Margin |
27.2%
|
4.2%
|
| Return on Equity |
32.87%
|
12.7%
|
| Dividend Yield |
2.18% |
2.9% |
| FCF Yield |
3.4%
|
5.82%
|
| Analyst Consensus |
Moderate Buy
|
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…
UnitedHealth Group is the world's largest diversified healthcare company, combining the dominant US health insurer UnitedHealthcare with the high-margin Optum services platform spanning care delivery, pharmacy benefits, and data analytics. The stock has fallen roughly 49% from its 2024 peak of $596, driven by elevated medical costs, DOJ antitrust scrutiny, CEO transitions (Brian Thompson's murder…
Accumulation Zones
| Metric |
JNJ |
UNH |
| Zone Low |
$157.71 |
$280.00 |
| Zone High |
$178.74 |
$340.00 |
| In Buy Zone? |
No
|
Yes
|