JNJ vs WMT: Which Is the Better Buy?
Side-by-side comparison of Johnson & Johnson and Walmart Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-15.
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
VS
Walmart Inc. · Consumer Defensive
$117.18
-39.6% upside to fair value
Grade C
High Quality
QuantHub Verdict
JNJ has more upside to fair value
(-21.7%).
JNJ trades at a lower forward P/E
(29.3x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
JNJ |
WMT |
| Current Price |
$253.85 |
$117.18 |
| Fair Value Estimate |
$198.76 |
$70.81 |
| Upside to Fair Value |
-21.7%
|
-39.6%
|
| Market Cap |
$611.1B |
$932.5B |
| Forward P/E |
29.3x
|
41.1x
|
| EV / EBITDA |
19.2x
|
20.7x
|
| Price / Sales |
6.3x
|
1.3x
|
| Price / FCF |
34.3x
|
74.3x
|
| Revenue Growth YoY |
+9.9%
|
+7.3%
|
| Gross Margin |
69.1%
|
25.0%
|
| Operating Margin |
26.9%
|
4.2%
|
| Return on Equity |
26.3%
|
24.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.91%
|
1.35%
|
| 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,…
Walmart Inc. operates as a leading discount retailer with a strong competitive moat built on scale, cost leadership, and advanced logistics and technology infrastructure. The company benefits from a diversified revenue base with Walmart U.S. contributing 69%, International 18%, and Sam's Club 13%. Despite solid revenue growth of 7.3% and earnings growth of 25.9% in the most recent quarter, the st…
Accumulation Zones
| Metric |
JNJ |
WMT |
| Zone Low |
$149.07 |
$53.11 |
| Zone High |
$168.95 |
$60.19 |
| In Buy Zone? |
No
|
No
|