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 2026-07-17.
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
VS
UnitedHealth Group Incorporated · Healthcare
$423.38
+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
(27.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
UNH |
| Current Price |
$253.85 |
$423.38 |
| Fair Value Estimate |
$198.76 |
$613.90 |
| Upside to Fair Value |
-21.7%
|
+45.0%
|
| Market Cap |
$611.1B |
$384.5B |
| Forward P/E |
29.3x
|
27.2x
|
| EV / EBITDA |
19.2x
|
13.8x
|
| Price / Sales |
6.3x
|
0.8x
|
| Price / FCF |
34.3x
|
19.6x
|
| Revenue Growth YoY |
+9.9%
|
+0.4%
|
| Gross Margin |
69.1%
|
18.8%
|
| Operating Margin |
26.9%
|
4.2%
|
| Return on Equity |
26.3%
|
12.4%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.91%
|
5.12%
|
| 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,…
UnitedHealth Group Incorporated operates in the healthcare sector, specifically within medical and healthcare plans, providing a durable business model supported by a strong competitive moat and consistent earnings growth. The company currently trades at a price of $423.38 with a market cap of $359.873 billion, reflecting a valuation that is cheap relative to its five-year history, supported by a…
Accumulation Zones
| Metric |
JNJ |
UNH |
| Zone Low |
$149.07 |
$460.42 |
| Zone High |
$168.95 |
$521.81 |
| In Buy Zone? |
No
|
Yes
|