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 2026-09-25.
Johnson & Johnson · Healthcare
$270.68
+5.7% upside to fair value
Med Conviction
Grade C
High Quality
VS
UnitedHealth Group Incorporated · Healthcare
$375.21
+28.2% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
UNH has more upside to fair value
(+28.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
JNJ |
UNH |
| Current Price |
$270.68 |
$375.21 |
| Fair Value Estimate |
$286.05 |
$481.06 |
| Upside to Fair Value |
+5.7%
|
+28.2%
|
| Market Cap |
$652.3B |
$340.7B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
20.2x
|
15.0x
|
| Price / Sales |
6.7x
|
0.8x
|
| Price / FCF |
35.3x
|
14.4x
|
| Revenue Growth YoY |
+6.6%
|
+0.4%
|
| Gross Margin |
67.9%
|
22.5%
|
| Operating Margin |
26.8%
|
4.8%
|
| Return on Equity |
25.7%
|
14.6%
|
| Dividend Yield |
1.95% |
2.41% |
| FCF Yield |
2.83%
|
6.95%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Johnson & Johnson is a 141,700-employee healthcare holding company operating two segments, Innovative Medicine (immunology, oncology, neuroscience, infectious disease, cardiovascular and metabolism, pulmonary hypertension) and MedTech (interventional solutions, orthopaedics, surgery, vision), founded in 1887 and headquartered in New Brunswick, New Jersey. Business quality is high on fundamentals:…
UnitedHealth Group is the largest diversified healthcare enterprise in the United States, operating UnitedHealthcare insurance plans alongside Optum Health, Optum Insight, and Optum Rx, with 390,000 employees and a market capitalization of $340.74 billion. The business quality is high: a 14.6% return on equity, $26.07 in free cash flow per share, and a P/FCF of 14.39 demonstrate strong cash gener…
Accumulation Zones
| Metric |
JNJ |
UNH |
| Zone Low |
$214.54 |
$360.80 |
| Zone High |
$243.14 |
$408.90 |
| In Buy Zone? |
No
|
Yes
|