JNJ vs WDC: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and Western Digital Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-08-06.
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
VS
Western Digital Corporation · Technology
$519.17
-28.7% upside to fair value
Med Conviction
Grade C+
QuantHub Verdict
JNJ has more upside to fair value
(-21.7%).
WDC trades at a lower forward P/E
(27.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
JNJ |
WDC |
| Current Price |
$253.85 |
$519.17 |
| Fair Value Estimate |
$198.76 |
$370.00 |
| Upside to Fair Value |
-21.7%
|
-28.7%
|
| Market Cap |
$611.1B |
$178.9B |
| Forward P/E |
29.3x
|
27.8x
|
| EV / EBITDA |
19.2x
|
37.3x
|
| Price / Sales |
6.3x
|
13.9x
|
| Price / FCF |
34.3x
|
51.0x
|
| Revenue Growth YoY |
+9.9%
|
+35.7%
|
| Gross Margin |
69.1%
|
48.9%
|
| Operating Margin |
26.9%
|
34.9%
|
| Return on Equity |
26.3%
|
43.4%
|
| Dividend Yield |
0% |
0.1% |
| FCF Yield |
2.91%
|
2.0%
|
| Analyst Consensus |
Buy
|
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,…
Western Digital is now a pure-play, duopoly hard-disk-drive manufacturer, having spun off its NAND flash business as SanDisk in February 2025 and sold its remaining SanDisk stake for $3.1 billion in February 2026. It is riding the same AI-storage supercycle as SanDisk and Micron, but from the mass-capacity nearline HDD side: hyperscalers are buying every high-capacity drive WDC can make for AI da…
Accumulation Zones
| Metric |
JNJ |
WDC |
| Zone Low |
$149.07 |
$278.00 |
| Zone High |
$168.95 |
$315.00 |
| In Buy Zone? |
No
|
No
|