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STOCK COMPARISON

Gilead Sciences vs Johnson & Johnson: Fair Value & Quality

Both stocks run through our valuation models. Here is how Gilead Sciences (GILD) and Johnson & Johnson (JNJ) compare, as of Oct 27, 2026.

As of Oct 27, 2026, Fair Value Calculator sees Gilead Sciences as the more attractively valued of the two: Gilead Sciences trades at $159 versus a fair value of $199 (+25.3%), while Johnson & Johnson trades at $266 versus $169 (−36.6%).
Gilead Sciences
GILD · USD · Health Care
+25.3%
upside to fair value
undervalued
Price$159
Fair Value$199
Quality81/100
Johnson & Johnson
JNJ · USD · Health Care
−36.6%
upside to fair value
overvalued
Price$266
Fair Value$169
Quality80/100
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

Gilead SciencesJohnson & Johnson
Valuation
18.5×P/E (TTM)40.4×
21.9×P/E ex one-offs (FY2025)24.7×
16.0×Forward P/E (FY2027)22.9×
15.8×Median P/E at FY-end (ex one-offs where documented)24.5×
6.48×P/S (TTM)6.54×
8.72× · book value is mostly goodwillP/B7.97× · book value is mostly goodwill
14.5×EV/EBITDA19.6×
2.27×PEG2.82×
+25.3%Fair value upside−36.6%
2.0%Dividend yield0.5%
$3.22Dividend per share$1.30
Profitability
33.7%Operating margin25.1%
2.41×EBIT margin trend (5Y)1.14×
-20.7%Return on equity25.7%
14.4%Return on assets13.5%
Growth
10.2%Revenue growth (YoY)5.9%
2.6%Avg. growth/yr (3Y)5.6%
3.6%Avg. growth/yr (5Y)2.7%
+10.4%Value creation/yr+13.8%
Balance & size
11.4×Interest coverage (EBIT/interest)26.4×
0.98×Debt / equity0.48×
$197BMarket cap$650B
healthyGrowth qualityhealthy
The P/E excluding one-off items is only shown where the special items are documented in the accounts (our own raw data or SEC filings). If one side lacks it, the reported P/E stays scored.
Gilead Sciences, median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 8 of the years ex one-offs: 15.8. Johnson & Johnson, median P/E at fiscal year-end, 9 fiscal years (2016 to 2025), reported earnings, 8 of the years ex one-offs: 24.5.
Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

Gilead Sciences leads: 10 to 4 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Gilead Sciences Johnson & Johnson
ProfitabilityHow much profit the company makes from its sales and capital
77
74
Quality GrowthAre margins and returns getting better?
67
73
CashflowDo the profits arrive as real cash?
86
70
Financial strengthDebt, balance sheet and risk of trouble
64
72
InvestmentDoes it invest with discipline instead of growing at any price?
97
87
Low VolatilityHow calm the share price moves, does not count
87
94
MomentumPrice trend of the last 3 to 12 months, does not count
70
65
Near the 52-week highDistance to the 52-week high, does not count
86
83
New sharesBuys back shares or issues new ones?
89
87

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyGilead SciencesPrice $159Johnson & JohnsonPrice $266
DCF Models+54.5%above the price$245−36.1%below the price$170
Earnings-Based−8.8%close to the price$145−70.4%below the price$78.71
Dividend Discount−58.1%below the price$66.51−58.8%below the price$110
Multiples−7.6%close to the price$147−36.6%below the price$169
Growth DCF+32.0%above the price$210−44.9%below the price$147
Economic Profit−28.5%below the price$114−62.1%below the price$101
Growth Earnings+25.3%above the price$199−22.4%below the price$207
Matching families7 of 7
Minimum−58.1%below the price$66.51−70.4%below the price$78.71
Maximum+54.5%above the price$245−22.4%below the price$207
Median−7.6%close to the price$147−44.9%below the price$147
Geometric mean−6.1%close to the price$149−49.8%below the price$134
Ahead family by family7 of 70 of 7

Minimum, maximum, median and geometric mean only use the families both stocks have (matching families: 7 of 7), so a family without a value on one side does not distort the comparison. Ahead in a family is the stock whose fair value there sits higher relative to its price. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Family by family: Gilead Sciences is ahead in 7 of 7 shared families, Johnson & Johnson in none.

Gilead Sciences: 14 of 24 models see the stock below the current price.

Johnson & Johnson: 24 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Gilead Sciences
Price $159
Fair Value $199
Bear $118Bull $258
Johnson & Johnson
Price $266
Fair Value $169
Bear $108Bull $255

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Gilead Sciences · Health Care

Quality score81 · Top 25%
Fair value upside+25.3% · Top 25%

Johnson & Johnson · Health Care

Quality score80 · Top 25%
Fair value upside−36.6% · below median

Bottom line

As of Oct 27, 2026, Fair Value Calculator sees Gilead Sciences as the more attractively valued of the two: Gilead Sciences trades at $159 versus a fair value of $199 (+25.3%), while Johnson & Johnson trades at $266 versus $169 (−36.6%).

Gilead Sciences has the higher quality score (81/100).

Open Gilead Sciences live analysis →

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.